Shareholders might have noticed that Powell Industries, Inc. (NASDAQ:POWL) filed its quarterly result this time last week. The early response was not positive, with shares down 6.9% to US$178 in the past week. It looks like a credible result overall - although revenues of US$279m were in line with what the analysts predicted, Powell Industries surprised by delivering a statutory profit of US$3.81 per share, a notable 11% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We check all companies for important risks. See what we found for Powell Industries in our free report.NasdaqGS:POWL Earnings and Revenue Growth May 9th 2025

Taking into account the latest results, the most recent consensus for Powell Industries from two analysts is for revenues of US$1.11b in 2025. If met, it would imply a credible 2.6% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$14.17, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$1.13b and earnings per share (EPS) of US$14.00 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Powell Industries

The consensus price target fell 5.9% to US$254, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Powell Industries' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Powell Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.3% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Powell Industries.

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The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Powell Industries' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Powell Industries' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Powell Industries going out as far as 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades  for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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