Pioneer Power (NASDAQ: PPSI) reported Q3 EPS of $0.21, $0.05 better than the analyst estimate of $0.16. Revenue for the quarter came in at $29.8 million versus the consensus estimate of $31.6 million.

2017 Outlook

The Company updated its full-year 2017 guidance which is based on expected business trends and the current composition of the order backlog, excluding the impact of any potential acquisitions, as their timing and investment levels cannot be known with certainty. In addition, this outlook excludes any significant fluctuations in foreign currency exchange rates. Pioneer\'s 2017 full-year guidance is based on a foreign currency exchange rate of 74 cents U.S. per Canadian Dollar, an effective tax rate at 28% and a share count of approximately 8.7 million shares. In addition, the impact of any restructuring and non-cash charges arising out of Pioneer\'s cost-optimization plans is excluded.

For the full year 2017, the Company expects:

• Revenue between $120 million and $127 million
• Net income between $1.8 million and $2.0 million
• Diluted EPS between $0.18 and $0.23 based on 8.7 million shares

This reflects non-GAAP results of:

• Adjusted EBITDA of $10.0 million to $11.0 million
• Non-GAAP EPS between $0.83 to $0.93

Third Quarter 2017 Results and Recent Business Highlights:

• Revenue of $29.8 million, up 1.4% compared to $29.4 million in Q3 2016
• Recorded a non-recurring, $873,000 charge as part of cost of goods sold related to the write-off of raw material inventory at the Company\'s Canadian dry-type distribution transformer business, which Pioneer is now sourcing from Asia
• Gross margin of 18.3%, inclusive of the $873,000 charge compared to 22.2% in Q3 2016
• Operating income of $599,000, down 50.6% from $1.2 million in Q3 2016
• Net loss of $764,000 compared to net income of $322,000 in Q3 2016
• Adjusted EBITDA* of $2.5 million, up 20.6% compared to $2.1 million in Q3 2016
• Secured new supply agreements to supply liquid-filled network transformers that are expected to generate annualized revenue of $3 million in the aggregate
• Won a three-year contract for submersible transformers in a competitive process with a municipally-owned power and utility provider for a larger North American city
• Launched an all-new line of power generation equipment to be marketed exclusively in eight states, and otherwise non-exclusively nationally
• Critical Power Division was selected to provide a remote monitoring solution for the emergency power systems at a limited number of stores for a leading home improvement retailer

GUIDANCE:

Pioneer Power sees FY2017 EPS of $0.83-$0.93, versus the consensus of $0.65. Pioneer Power sees FY2017 revenue of $120-127 million, versus the consensus of $123.4 million.

For earnings history and earnings-related data on Pioneer Power (PPSI) click here.