Powell Industries (POWL) experienced a sharp 15.5% decline in its stock price during pre-market trading on Wednesday. This plunge comes after the company reported its fiscal third-quarter 2024 financial results on Tuesday, which missed Wall Street's revenue expectations despite beating earnings estimates.

The electrical energy control systems manufacturer posted revenue of $275.1 million for the third quarter, falling short of the anticipated $286.5 million. While Powell's adjusted earnings per share of $3.77 exceeded consensus estimates of $3.55, and its adjusted EBITDA of $57.91 million surpassed expectations of $54.87 million, the revenue miss raised concerns among investors regarding the company's future growth prospects.

Analysts have projected a revenue growth of only 7.2% over the next 12 months for Powell, a significant deceleration compared to the previous two years. This slower growth projection, coupled with the third-quarter revenue miss, has likely contributed to the pre-market sell-off, as investors re-evaluate the company's growth trajectory and potential challenges.