Powell Industries (POWL) stock is experiencing a significant pre-market plunge of 11.11% on Wednesday, following the release of its third-quarter fiscal 2025 financial results. The sharp decline comes after the stock already dropped 10.68% in Tuesday's regular trading session, indicating that investors are continuing to react negatively to the company's earnings report.

According to the company's announcement, Powell Industries reported Q3 revenue of $286 million and earnings per share (EPS) of $3.96. The company's gross profit reached $88 million, resulting in a gross margin of 30.7%. Net income for the quarter stood at $48 million, while new orders amounted to $362 million. Despite these figures showing growth in several key areas, the market's response suggests that the results fell short of expectations.

The continued sell-off in pre-market trading implies that investors may have been anticipating even stronger results or more optimistic future guidance from Powell Industries. The market's negative reaction could also be attributed to concerns about the sustainability of growth, potential industry headwinds, or other factors not immediately apparent in the reported financials. As the trading day progresses, investors and analysts will likely scrutinize the earnings report further to better understand the factors driving this significant stock price decline.