August 4, 2010 / 11:34 AM / 7 years ago

UPDATE 2-Powell Industries Q3 EPS beats, ups FY profit view

3 Min Read

* Q3 EPS $0.88 vs est $0.33

* Sees FY EPS $2.95-$3.20, rev $560 mln-$575 mln

* Says most key markets appear to be stabilizing

* Shares rise 11 pct (Recasts; adds conference call details, updates share movement) BANGALORE, Aug 4 (Reuters) - Powell Industries Inc (POWL.O), which makes equipment to control energy, posted a third-quarter profit that handily beat Wall Street expectations on higher orders, prompting the company to raise its 2010 earnings forecast, sending its shares up 11 percent.

The company, which caters to the oil and gas, petrochemical, utility and transportation industries, forecast 2010 earnings of $2.95 to $3.20 a share, up from its prior view of $2.10 to $2.35 a share.

It also raised the lower end of its full-year revenue outlook range by $10 million to $560 million to $575 million.

Analysts on average were expecting earnings of $2.33 a share, on revenue of $558.2 million, according to Thomson Reuters I/B/E/S.

"We expect to see modest improvement in business activity over the coming year, primarily from capital projects outside of the United States," Chief Executive Patrick McDonald said.

During the third quarter, new orders rose to $136 million from $113 million in the second quarter, driven by orders in Canada.

Powell, which acquired Canada-based PowerComm, a provider of electrical and instrumentation construction and maintenance services, in the first quarter, said the acquisition contributed a little less than $20 million to third-quarter sales.

"The integration of our recent acquisition in Canada is progressing well and remains on track," the company said on a conference call with analysts.

For the third quarter, the company earned $10.3 million, or 88 cents a share, compared with $13.1 million, or $1.14 a share, a year ago.

Revenue fell 16 percent to $138.9 million.

Analysts were expecting earnings of 33 cents a share, on revenue of $139.1 million.

Shares of the Houston-based company were trading up 8 percent at $35.51 Wednesday afternoon on Nasdaq. They touched a high at $36.67 earlier in the session. (Reporting by Soham Chatterjee and Fareha Khan in Bangalore; Editing by Anne Pallivathuckal)

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