Shares of Powell Industries, a Houston-based company that manufactures equipment for electricity distribution, dropped 10% to $79.24 in afternoon trading following a slowdown in new orders during the fiscal fourth quarter. This decline comes after the stock reached a 52-week high of $93.18 on Tuesday and represents a significant setback for the company, whose shares have more than doubled in value this year.
For the quarter ending September 30, Powell Industries reported net new orders of $171 million, significantly lower than both the $259 million recorded in the same period last year and the $505 million reported in the previous quarter. According to Chief Executive Brett Cope, these lower orders are indicative of more normalized trends for order activity compared to previous quarters.
Despite the decline in new orders, Powell Industries still managed to report a profit of $26.4 million, or $2.17 per share, for the quarter. This is a considerable increase compared to the $8.74 million profit, or 73 cents per share, recorded in the same period the previous year. The company attributed this boost in earnings to certain unusual items, which contributed an additional 22 cents per share.
Overall, Powell Industries saw its revenue rise by 28% to $208.6 million in the fiscal fourth quarter.