Power Solutions International Inc. (PSIX) designs, engineers, manufactures, markets, and sells engines and power systems in the Pacific Rim, Europe, North America, and the US. In the third quarter, Power Solutions sales rose 62% to $203.8 million from $125.8 million in the same quarter a year ago, notes Louis Navellier, founder and chairman of Navellier & Associates.
PSIX offers engine blocks integrated with fuel system parts, as well as completely packaged power systems, that include combinations of front accessory drives, cooling systems, electronic systems, air intake systems, fuel systems, housings, power takeoff systems, exhaust systems, hydraulic systems, enclosures, brackets, hoses, tubes, packaging, telematics, and other assembled componentry.
Power Solutions also (1) designs and manufactures large, custom-engineered integrated electrical power generation systems for standby and prime power applications; (2) sells emission-certified compression ignition and spark-ignition internal combustion engines; and (3) fabricates power system enclosures, as well as sources electrification components.
Power Solutions International Inc. (PSIX)
Additionally, the company provides (1) mobile and stationary gensets for emergency standby, rental, prime power, demand response, microgrid, oil and gas, data center, renewable energy resiliency, and combined heat and power; (2) forklifts, wood chippers, stump grinders, sweepers/industrial scrubbers, aerial lift platforms/scissor lifts, irrigation pumps, oil and gas compression, oil lifts, off road utility vehicles, ground support equipment, ice resurfacing equipment, pump jacks, and battery packs; and (3) vocational trucks and vans, school buses, transit buses, and terminal and utility tractors.
During the same period that sales jumped, the company’s earnings rose 60% to $27.6 million, or $1.20 per share, compared to $17.3 million, or 75 cents per share. The analyst community was expecting sales of $165.9 million and earnings of 98 cents per share, so the company posted a 22.8% sales surprise and a 22.4% earnings surprise!
Recommended Action: Buy PSIX.
