Power Solutions International, Inc. Common Stock (OTC:PSIX)

Power Solutions International, (OOTC:PSIX) ($26.00; $597.7 M market cap) - announced Q3 2024 results:

• Sales of $125.8 million vs $115.9 million in the prior year
• Adjusted EPS of $0.75 vs $0.39 in the prior year

"We continued to deliver strong profit in the third quarter, driven by higher sales from our power systems business, including contributions from the expanding data center sector, along with ongoing operational excellence. To meet growing customer demand, our team is actively working on several projects to expand manufacturing capacity. The Company also is committed to efficiently managing expenses, including streamlining operating expenses and prioritizing certain R&D investments in support of long-term growth objectives.” 

Outlook for 2024 (maintains guidance)

The Company expects its net sales in 2024 to increase by approximately 3% versus 2023 levels, a result of expectations for strong growth in the power systems end market paired with lower sales in the industrial end market and a forecasted reduction in the transportation end markets. 

Power Solutions International Inc is an America-based company that manufactures, distributes, and services power systems that primarily run on non diesel fuels, including natural gas, propane, and gasoline.

Power Solutions International, (OOTC:PSIX) ($19.80; $455.2 M market cap) - Since we recently added PSIX to our Buy on Pullback (NOP) Model Portfolio #12 and as an Open Forum Focus Stock, we wanted to share a  Seeking Alpha article published over the weekend titled "Power Solutions International: A Company With Great Potential Set to Continue Growing" for additional insights from another investor's perspective.

Article Highlights::

• Power Solutions International continued its margin expansion despite top-line contraction in the first half of 2023.
• Continued strong demand across the power system solutions end market and favorable pricing and mix should benefit sales in the quarters ahead.
• Margin prospects also look promising, mainly due to strong pricing and focus on efficiency improvement.
• Despite the recent surge in the stock price, the company stock still presents a decent valuation, making it a good investment for the longer term.

At the beginning of this month, PSIX was added to the Open Forum Focus Stock Model Portfolio due to its strong Q2 2024 performance and potential in the data center market, driven by new contracts and market expansion. Despite a recent revenue dip, the company's turnaround under new leadership, focusing on margin improvements and cutting legacy product losses, positions it well for future growth. 

Power Solutions International Inc is an America-based company that manufactures, distributes, and services power systems that primarily run on non diesel fuels, including natural gas, propane, and gasoline.