Why Shares of Powell Industries Are Skyrocketing Today

After closing lower on Monday and Tuesday this week, shares of electrical solutions provider Powell Industries (NASDAQ: POWL) are roaring higher today after the company reported strong third-quarter results yesterday after markets closed.

As of 11:30 a.m. ET on Wesnesday, shares of Powell Industries are up 30.9%.

What's charging up investor excitement about the company's performance?

Smashing analysts' expectations that it would report $222.2 million on the top line, Powell posted revenue of $288 million for the third quarter. Another pleasant surprise was found at the bottom of the income statement: diluted earnings per share (EPS) of $3.79, far outpacing analysts' estimates of $2.16.

But it isn't solely the company's success in exceeding analysts' expectations that's driving the stock higher today. Powell Industries expanded its gross profit margin to 28.4% in the third quarter, a year-over-year increase of 620 basis points .

Besides the recent performance, investors are likely responding to management's optimism about the remainder of the year.  Michael Metcalf, the company's chief financial officer, said, "Commercial activity remains strong, providing a tailwind as we close out the year and prepare for fiscal 2025."

Is it too late to power your portfolio with Powell Industries?

The company's third-quarter results certainly have several bright spots, but it's important to recognize that it hasn't submitted its Form 10-Q , providing the full picture of the recent performance. Until then, investors who have Powell Industries on their radars should refrain from clicking the buy button, standing apart from the market enthusiasm that's driving shares higher today.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .