Powell: Q4 Earnings Beat Estimates But Stock Declines
Key Financial Highlights:
* Revenue: $241.4 million, exceeding analyst estimates ($232.6 million) by 3.8%
* EPS (GAAP): $2.86, surpassing consensus estimates ($2.61) by 9.4%
* Adjusted EBITDA: $37.33 million, below expectations ($43.61 million) by 14.4%
Positive Performance Indicators:
* Revenue growth of 24.4% year-over-year
* Operating margin rise to 14.7% from 13.3%
* Robust order backlog of $1.3 billion
Management Commentary:
Brett A. Cope, Powell's CEO, highlighted strong order growth and robust tailwinds in key markets. He expressed confidence in ongoing growth in 2025.
Business Overview:
Powell has evolved from a local metal shop to a global provider of electrical systems, catering to the connectivity and industrial automation sectors.
Growth Momentum:
* Compounded annual growth rate of 14.4% in sales over the last five years
* Annualized revenue growth of 38.5% over the past two years
Profitability:
* Operating margin of 9.1% over the last five years, exceeding the industry average
* Operating margin expansion by 14.3 percentage points
Earnings Per Share:
* Five-year compounded annual growth rate of 58.4% in EPS
* Two-year annual EPS growth of 197%
Investment Considerations:
Despite the positive earnings report, Powell's stock declined 6% after release. Investors may want to assess the company's valuation, business qualities, and earnings potential before making investment decisions.
Analyst Recommendations:
Sell-side analysts project 7.9% revenue growth and 8% EPS growth for Powell over the next 12 months.
Disclaimer:
This information should not be considered professional investment advice. Investors should conduct their own due diligence before making any investment decisions.