Tuesday, Powell Industries, Inc. (POWL), a provider of electrical energy and critical processes equipments, announced an increase in earnings for the third quarter ended June 30, 2009 compared to the prior year. The increase is attributable to a gain from mediated settlement related to a previously completed contract that had been in dispute for several years. Further, the company revises its fiscal 2009 guidance.
Net earnings for the third quarter were $13.14 million, compared with net earnings of $7.9 million in the year-ago period. Earnings per share for the quarter was $1.14, compared with $0.69 last year.
On average, four analysts polled by Thomson Reuters expected the company to earn $0.71 per share. Analysts' estimates typically exclude special items.
The company noted the fiscal third quarter, as well as year-to-date revenues and earnings were benefited by $3.5 million and approximately $0.16 per share, respectively, due to a mediated settlement related to a previously completed contract that had been in dispute for several years.
Revenues for the third quarter were $165.94 million, compared with revenues of $164.12 million for the third quarter year-ago. Three Wall Street analysts expected revenues of $170.27 million for the quarter.
Commenting on the results, Patrick McDonald, president and chief executive officer, said "The current economic climate continues to impact project opportunities as many of our customers are adopting a wait and see attitude because of uncertainty regarding future government policies before committing to long-term capital investments. However, we are seeing positive trends for projects in our transit business as well as our service business."
Net income for the first nine months of fiscal 2009 was $29.8 million, or $2.59 per share, compared to net income of $17.5 million, or $1.53 per share, in the comparable period of fiscal 2008.
Year-to-date revenues were $500.5 million compared to revenues of $471.6 million year-ago.
Based on Powell Industries' backlog and current business conditions, the company now expects fiscal 2009 earnings to range between $3.15 and $3.30 per share. Earlier outlook was in a range of $2.60 per share to $2.85 per share.
The company now expects fiscal 2009 revenues to range between $650 million and $665 million, while previous outlook was in a range of $670 million to $695 million.
Analysts estimate earnings of $2.86 per share and revenues of $677.71 million for the fiscal 2009.
POWL is currently trading on NASDAQ at $37.00.
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