Electrical energy control systems manufacturer Powell (NYSE:POWL) will be reporting results this Monday after market hours. Here’s what investors should know.
Powell missed analysts’ revenue expectations last quarter, reporting revenues of $311.7 million, up 8.9% year on year. It was an underwhelming 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 11.2% year on year, improving from the 8.3% increase it recorded 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 Q3 results, giving us a hint as to what we can expect. Sanmina delivered year-on-year revenue growth of 84%, beating analysts’ expectations by 10.8%, and Vertiv reported revenues up 61.2%, topping estimates by 14.5%. Sanmina traded up 3.5% following the results while Vertiv was also up 17.9%.
Read our full analysis of Sanmina’s results here and Vertiv’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 2.5% on average over the last month. Powell is down 15.8% during the same time and is heading into earnings with an average analyst price target of $253 (compared to the current share price of $142.14).
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