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 suggests that the earnings report, despite showing growth in several areas, fell short of market expectations.

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, indicating continued demand for Powell's products and services.

Despite these seemingly positive figures, the market's negative reaction implies that investors may have been anticipating even stronger results or more optimistic future guidance. The pre-market plunge 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 will be closely watching for any additional insights or analyst commentary that might further explain the market's sharp response to Powell Industries' earnings report.