POWELL INDUSTRIES Reports Third Quarter FY2023 Earnings Results
August 21, 2023
🌥️Earnings Overview
POWELL INDUSTRIES ($NASDAQ:POWL) reported total revenue of USD 192.4 million for the third quarter of FY2023, ended June 30 2023, which is a 42.0% rise year-on-year. Furthermore, its net income was USD 18.4 million, a 103.6% jump compared to the same period the previous year.
Market Price
POWELL INDUSTRIES reported its earnings results for the third quarter of their fiscal year 2023 on Tuesday. At the start of the day, their stock opened at $60.9 and closed at $61.3, representing a 0.8% increase from the previous closing price of $60.8. This is a promising sign for the company, showing that overall investor sentiment is positive despite financial challenges posed by the pandemic.
Their stock price has also benefited from investor confidence, making this a great time for shareholders to invest in the company. By continuing to focus on long-term growth strategies, POWELL INDUSTRIES should be able to maximize their profits and continue to be a successful company for years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Powell Industries. More…
| Total Revenues | Net Income | Net Margin |
| 653.34 | 36.83 | 5.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Powell Industries. More…
| Operations | Investing | Financing |
| 129.52 | -8.91 | -12.95 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Powell Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 671.1 | 347.03 | 27.32 |
Key Ratios Snapshot
Some of the financial key ratios for Powell Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.8% | 21.6% | 6.6% |
| FCF Margin | ROE | ROA |
| 19.1% | 8.5% | 4.0% |
Analysis
At GoodWhale, we conducted an analysis of POWELL INDUSTRIES‘ fundamentals and came up with a Star Chart that shows the company has an intermediate health score of 6/10 with regard to its cashflows and debt, suggesting the company might be able to sustain future operations in times of crisis. Further analysis revealed that POWELL INDUSTRIES is strong in asset and dividend, and medium in growth and profitability. Based on this information, we classified POWELL INDUSTRIES as a ‘cheetah’ company, meaning one that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. When it comes to what type of investors may be interested in such a company, we believe those looking for high returns in the short term may be best suited to invest in POWELL INDUSTRIES. This is because the company has achieved significant growth but may not be able to sustain it in the long term due to its lower profitability. Therefore, investors who are comfortable with taking risks and have a shorter-term focus will likely find POWELL INDUSTRIES to be a good option. More…
Peers
The company operates in North America, Europe, Asia Pacific, and South America. Powell Industries Inc has a strong competitive position in the market, with a number of well-known competitors including Pioneer Power Solutions Inc, Terasaki Electric Co Ltd, and Fortune Electric Co Ltd.
– Pioneer Power Solutions Inc ($NASDAQ:PPSI)
Pioneer Power Solutions Inc. is a power conversion solutions provider that designs, manufactures, and supplies a broad range of transformers and related products for the electrical transmission and distribution industry. The company operates in two segments, Transformers and Switchgear, and Circuit Breakers. It offers a range of standard and custom-engineered liquid-filled and dry-type transformers, as well as switchgear and circuit breakers. Pioneer Power Solutions Inc. was founded in 1946 and is headquartered in Fort Lee, New Jersey.
– Terasaki Electric Co Ltd ($TSE:6637)
Terasaki Electric Co Ltd is a Japanese company that specializes in electrical equipment and services. As of 2022, it has a market cap of 12.31 billion dollars and a return on equity of 3.59%. The company has a long history dating back to its founding in 1903, and it has been a major player in the electrical equipment industry in Japan and around the world. Terasaki’s products include circuit breakers, switchgear, transformers, and other electrical equipment. The company also provides engineering and construction services for power plants and other large-scale projects.
– Fortune Electric Co Ltd ($TWSE:1519)
Fortune Electric Co Ltd is a Taiwanese company that manufactures electric motors and related products. The company has a market cap of 9.45B as of 2022 and a Return on Equity of 10.11%. Fortune Electric is a leading manufacturer of electric motors in the world and has a strong presence in the Asian market. The company’s products are used in a wide range of applications including HVAC, pumps, fans, compressors, and other industrial and commercial applications.
Summary
Powell Industries Inc. has reported impressive financial results for the third quarter of the fiscal year 2023. Total revenue for the quarter increased by 42.0% year-over-year to USD 192.4 million, while net income rose 103.6% to USD 18.4 million. This demonstrates that Powell Industries is continuing to experience strong growth, driven by increased demand for its products and services. This is further evidenced by the increased gross profits and operating income being generated by the company.
Furthermore, the company has also seen improvements in its cash flow and balance sheet, which is likely to bode well for long-term investments. Overall, these numbers indicate that Powell Industries is a sound investment opportunity, and investors should strongly consider adding it to their portfolios.
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