Powell Industries, Inc. POWL is scheduled to release second-quarter fiscal 2025 (ended March 31, 2025) results on May 6, after market close.

The company has an impressive earnings surprise history, the average beat being 33.3%. In the last reported quarter, its earnings of $2.86 per share surpassed the Zacks Consensus Estimate of $2.83 by 1.1%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let’s see how things have shaped up for Powell this earnings season.

Key Factors and Estimates for Q2

Solid momentum across the petrochemical and oil and gas markets is expected to have aided the company’s performance in the second quarter of fiscal 2025. Also, growth in energy transition projects, such as biofuels, carbon capture and hydrogen, is likely to drive Powell’s results in the to-be-reported quarter.

Investment in POWL’s Houston facility, which expanded fabrication and integration support for its large power control rooms, is expected to bolster top-line results.

The company’s diversification efforts beyond its core oil, gas and petrochemical markets are likely to have aided its performance.

The Zacks Consensus Estimate for the company’s fiscal second-quarter revenues is pegged at $277.3 million, indicating an increase of 8.7% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings is pinned at $3.34 per share, indicating a 21.5% increase from the year-ago quarter’s reported number.

However, over time, Powell’s performance has been negatively impacted by high costs and expenses. An increase in raw material cost is likely to have been a spoilsport in the to-be-reported quarter.

The company’s international presence exposes it to the risk of adverse currency fluctuations, which are likely to have hurt its performance in the to-be-reported quarter.

Powell Industries, Inc. Price and EPS Surprise

Powell Industries, Inc. price-eps-surprise | Powell Industries, Inc. Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for POWL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: Powell has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.34. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Powell presently carries a Zacks Rank of 3.

Performance of Other Companies

AZZ Inc. AZZ came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.

AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million. 

Valmont Industries VMI reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share of $4.32 for the same period compare with $4.32 a year ago.

The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate being $4.24 per share.

Story Continues

A Stock to Consider

Here is a company, which according to our model, has the right combination of elements to beat on earnings in this reporting cycle.

Trimble Inc. TRMB has an Earnings ESP of +5.44% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release first-quarter 2025 results on May 7. TRMB’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.8%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Valmont Industries, Inc. (VMI):Free Stock Analysis Report

Trimble Inc. (TRMB):Free Stock Analysis Report

AZZ Inc. (AZZ):Free Stock Analysis Report

Powell Industries, Inc. (POWL):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments