Loading...
•
Jun 30, 2020
Powell Industries Q3 2020 Earnings Report
Powell Industries announced third quarter results, reporting decreased revenue and net income compared to the same quarter last year, but highlighted strong margins and cash flow.
Key Takeaways
Powell Industries reported a decrease in revenue to $118.1 million compared to $135.6 million in the third quarter of fiscal year 2019. Net income also decreased to $3.5 million, or $0.30 per diluted share, compared to $5.1 million, or $0.44 per diluted share, in the same period last year. The company's backlog as of June 30, 2020, was $532 million. Despite the challenges, the company highlighted strong margins and cash flow.
Revenues for the third quarter of fiscal 2020 were $118.1 million, a decrease from $135.6 million in the third quarter of fiscal 2019.
Net income for the third quarter of fiscal 2020 was $3.5 million, or $0.30 per diluted share, compared to $5.1 million, or $0.44 per diluted share, for the third quarter of fiscal 2019.
New orders placed during the third quarter of fiscal 2020 totaled $81 million, compared to $145 million in the third quarter of fiscal 2019.
The Company’s backlog as of June 30, 2020 was $532 million, compared to $407 million as of June 30, 2019.
Powell Industries
Powell Industries
Forward Guidance
Powell Industries anticipates a more challenging commercial environment but expects a strong fiscal year 2020 financially, given its robust backlog position, year-to-date earnings, and operational cash flow.
Positive Outlook
- Solid operational momentum through the fiscal third quarter of 2020.
- Orders and earnings per share at their highest levels through the first nine months of the year dating back to fiscal 2015.
- Robust backlog position.
- Strong year-to-date earnings.
- Strong operational cash flow.
Challenges Ahead
- More challenging commercial environment with respect to broader industrial end markets.
- Increased uncertainty across the geographies where they operate and compete.
- Need to reduce workforce to align operating costs with the current market activity.
- Global market uncertainty and challenges associated with the COVID-19 pandemic.
- Lower sequential and year-over-year revenues.