Powell Industries Q3 Profit Decreases; Cuts Guidance - Quick Facts

(RTTNews) - Powell Industries, Inc. (POWL) reported that its third-quarter income from continuing operations decreased to $2.9 million, or $0.24 per share, from $9.1 million, or $0.76 per share, prior year. The company said its income from continuing operations declined due to both lower revenues and higher operating costs from inefficiencies of an accelerated production ramp at its manufacturing facility in Canada.

On average, five analysts polled by Thomson Reuters expected the company to report profit per share of $0.88 for the quarter. Analysts' estimates typically exclude special items.

Revenues were $150.8 million compared to $171.7 million, a year ago. The company said its third quarter revenue decline was due to schedule changes on several projects, resulting in some work moving into subsequent quarters. Analysts expected revenue of $191.16 million, for the quarter.

Powell Industries has reduced full year fiscal 2014 revenues from continuing operations to range between $650 million and $675 million from its previous guidance of $700 million to $750 million and has reduced fiscal year 2014 earnings to range between $2.15 and $2.40 per share from its previous guidance of $2.85 and $3.35 per share. Analysts expect the company to report 2014 earnings per share of $3.12 on revenue of $722.13 million.

Don Madison, CFO, said: "The decrease in our outlook is primarily due to lower revenue and higher operating costs in Canada for the third and fourth quarters compared to previous estimates. Additionally, some U.S. projects have been re-scheduled into fiscal 2015 based on customer-directed requests."