Powell Industries, Inc. (POWL – Snapshot Report) announced fourth quarter fiscal 2014 earnings of 20 cents per share, outpacing the Zacks Consensus Estimate of a loss of 7 cents.  However, the bottom line lagged the year-ago earnings of 75 cents per share by 73.3%.

In fiscal 2014, Powell’s earnings were $1.62 per share lagging the Zacks Consensus Estimate by 25.3%. The yearly earnings also plunged 38.2% from fiscal 2013 earnings of $2.62 per share.

 

Powell Industries, Inc – Earnings Surprise | FindTheBest

 

Total Revenue

Total revenues in the fiscal fourth quarter were $162.8 million, ahead of the Zacks Consensus Estimate by 10%. Total revenues in the reported quarter however declined from the year-ago figure of $176.2 million.

Fiscal year revenues of $647.8 million increased from $640.9 million in the prior fiscal by 1.1%.

Operational Update

Powell Industries’ selling, general & administrative (SG&A) expenses during the quarter were $21.0 million, up 11.8% from the comparable prior-year period. Research and development expenses decreased 6.3% year over year to $1.8 million.

In the reported quarter, operating income decreased substantially to $2.8 million from $16.6 million in the year-ago period.

New orders placed in the fiscal fourth quarter were worth $199 million, slightly higher than the $196 million received in the fourth quarter of fiscal 2013.

Interest expenses in the reported quarter decreased 37.3% year over year to $32 million.

Financial Update

Long-term debt and capital lease obligations as of Sep 30, 2014, were $2.8 million, lower than $3.2 million as of Sep 30, 2013.
Capital expenditure in the quarter under review was $5.2 million, down from $20.6 million in the year-ago period.

Guidance

Powell Industries expects fiscal 2015 revenues from continuing operations to range between $650 million and $710 million and earnings per share for the same period to lie in a band of $1.75 and $2.30 per diluted share.

The guidance provided above is based on the current business condition and takes into account the backlog orders.

Other Releases

A.O. Smith Corp. (AOS – Snapshot Report) posted strong third-quarter earnings of $59 cents a share, which were 3.5% above the Zacks Consensus Estimate of 57 cents.

Emerson Electric Company (EMR – Analyst Report) reported fourth-quarter fiscal 2014 earnings of $1.30 per share, beating the Zacks Consensus Estimate of $1.22 by 6.6%.

Eaton Corporation plc (ETN – Analyst Report) reported third-quarter earnings per share of $1.29, beating the Zacks Consensus Estimate of $1.23 by 4.9%.

Outlook

Powell Industries reported  fiscal fourth-quarter 2014 results, with earnings and revenues surpassing the respective Zacks Consensus Estimate while declining year over year.

The company closed fiscal 2014 with total orders of $726 million from continuing operations. Total backlog at the end of Sep 30, 2014 was $507 million compared with $438 million at the end Sep 30, 2013. This shows the company’s ability to win regular contracts.

Powell Industries currently has a Zacks Rank #3 (Hold).

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