Electrical energy control systems manufacturer Powell (NYSE: POWL) will be announcing earnings results this Monday after market hours. Here’s what to look for.
Powell missed analysts’ revenue expectations last quarter, reporting revenues of $296.6 million, up 6.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Powell a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Powell’s revenue to grow 10.7% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Powell has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Powell’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Garrett Motion reported revenues up 6.9%, topping estimates by 3.3%. Allegion traded up 9.6% following the results while Garrett Motion was also up 3.6%.
Read our full analysis of Allegion’s results here and Garrett Motion’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the electrical systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Powell is down 15.3% during the same time and is heading into earnings with an average analyst price target of $316.25 (compared to the current share price of $209.72).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
