Electrical equipment and systems manufacturer Powell Industries, Inc. (POWL) Wednesday reported an increase in fourth-quarter profit that also surpassed analysts' estimates by a wide margin, despite a decline in revenue. The company also provided an outlook for the full year.
Net income attributable to company for the fourth quarter increased to $9.64 million or $0.83 per share from $7.85 million or $0.68 per share in the same period last year. On average, six analysts polled by Thomson Reuters expected the company to earn $0.59 per share. Analysts' estimates typically exclude special items.
Revenues decreased to $135.92 million from $170.49 million in the comparable period last year. Five analysts estimated revenues of $155.49 million for the quarter.
Gross profit for the period increased to $37.82 million from $34.50 million in the same quarter last year. Operating profit for the quarter rose to $15.18 million from $12.94 million in the comparable period last year.
New orders placed increased to $108 million from $172 million in the year-ago period. The company's backlog as of December 31, 2009 was $342 million compared to $509 million at the end of last year's first quarter.
"We had anticipated a strong first quarter, and our results also benefited from customers' delivery needs, as well as our initiatives to reduce operating costs as we plan for softer market conditions in 2010," said Patrick McDonald, President and Chief Executive Officer.
Looking ahead, McDonald added, "We believe fiscal 2010 will be a challenging year...We are seeing some early signs of a market rebound in Canada. In the meantime, we continue to focus on our customer base, both client development and support, and believe we are strongly positioned with the capabilities and resources to support our customers on projects around the world."
Based on the strong first quarter results, current backlog, and the recent PowerComm Inc. acquisition, the company now expects full year revenues to range between $550 million and $600 million and earnings to range between $1.65 and $2.00 per share. Analysts current consensus for the full year calls for earnings of $1.82 per share and revenues of $584.41 million.
POWL closed Tuesday's regular trading at $29.35 per share on the Nasdaq.
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