Gross margins have experienced severe compression, falling from a peak of 27.8% in 2014Q3 to just 8.8% by 2016Q1, indicating a fundamental struggle to maintain profitability.
| Sales/Revenue | 469.34M | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 89.13M | 101.17M | 64.57M | 71.58M | 51.09M | 40.69M | 35.29M | 35.52M | 43.71M | 34.31M | 34.79B |
| Gross Margin % | 18.99% | 22.8% | 25.16% | 26.49% | 31.53% | 31.3% | 36.19% | 34.64% | 32.27% | 30.88% | 28.89% |
| Gross Profit Growth % | - | 56.69% | -9.8% | 40.12% | 25.54% | 15.3% | -0.65% | -18.72% | 27.41% | -99.9% | - |
| Operating Expenses | 93.74M | 90.14M | 74.64M | 62.94M | 49.22M | 41.73M | 37.25M | 32.44M | 36.4M | 41.85M | 23.97B |
| OpEx % of Revenue | - | 20.32% | 29.08% | 23.29% | 30.37% | 32.09% | 38.2% | 31.63% | 26.88% | 37.67% | 19.9% |
| Selling, General & Admin | 69.61M | 66.8M | 56.42M | 47.07M | 36.2M | 33.65M | 29.34M | 26.05M | 28.9M | 22.49M | 19.34B |
| SG&A % of Revenue | - | 15.06% | 21.98% | 17.42% | 22.34% | 25.88% | 30.09% | 25.41% | 21.34% | 20.24% | 16.05% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -4.61M | 11.03M | -10.07M | 8.64M | 1.87M | -1.03M | -1.95M | 3.09M | 7.31M | -7.54M | 11.71B |
| Operating Margin % | -0.98% | 2.49% | -3.92% | 3.2% | 1.15% | -0.79% | -2% | 3.01% | 5.4% | -6.79% | 9.72% |
| Operating Income Growth % | - | 209.56% | -216.55% | 361.98% | 281.2% | 47.16% | -163.2% | -57.72% | 196.88% | -100.06% | - |
| EBITDA | 6.16M | 21.56M | -1.17M | 15.93M | 6.65M | 2.39M | 801K | 5.51M | 9.34M | 1.49B | 12.7B |
| EBITDA Margin % | 1.31% | 4.86% | -0.45% | 5.89% | 4.1% | 1.84% | 0.82% | 5.37% | 6.9% | 1343.3% | 10.54% |
| EBITDA Growth % | -0.92% | 1947.22% | -107.33% | 139.49% | 178.13% | 198.5% | -85.46% | -41.01% | -99.37% | -88.24% | - |
| D&A (Non-Cash Add-back) | 10.78M | 10.53M | 8.9M | 7.29M | 4.78M | 3.42M | 2.75M | 2.42M | 2.03M | 1.5B | 991.57M |
| EBIT | -4.48M | 11.04M | -5.76M | 5.05M | 2.55M | 22.78M | 1.91M | 5.87M | 0 | 0 | 11.71B |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.27M | 1.14M | 1.24M | 817K | 449K | 575K | 619K | 607K | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -5.75M | 9.9M | -6.99M | 4.23M | 2.1M | 22.2M | 1.29M | 5.26M | 11.56M | -2.83M | 9.68B |
| Pretax Margin % | -1.22% | 2.23% | -2.72% | 1.57% | 1.29% | 17.08% | 1.32% | 5.13% | 8.53% | -2.55% | 8.04% |
| Income Tax | -1.67M | 4.06M | 0 | 3.67M | 850K | 3.13M | -526K | 953K | -823K | 1.83M | -2.03B |
| Effective Tax Rate % | 29.04% | 41% | 0% | 86.79% | 40.51% | 14.11% | -40.71% | 18.12% | -7.12% | -64.74% | -20.94% |
| Net Income | -4.21M | 5.84M | -6.99M | 4.41M | 3.08M | 24.05M | 3.31M | 4.3M | 10.66M | -1.61M | 11.71B |
| Net Margin % | -0.9% | 1.32% | -2.72% | 1.63% | 1.9% | 18.5% | 3.39% | 4.2% | 7.87% | -1.45% | 9.72% |
| Net Income Growth % | -60.99% | 183.51% | -258.48% | 43.34% | -87.2% | 626.81% | -23.14% | -59.61% | 762.81% | -100.01% | - |
| Net Income (Continuing) | -4.21M | 5.84M | -6.99M | 4.41M | 3.08M | 24.05M | 3.31M | 4.3M | 10.66M | -1.61M | 11.71B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.19 | 0.26 | -0.31 | 0.22 | 0.16 | 1.26 | 0.05 | 0.09 | 0.66 | -0.10 | 0.71 |
| EPS Growth % | -60.61% | 183.87% | -240.91% | 37.5% | -87.3% | 2420% | -44.01% | -86.47% | 760% | -114.08% | - |
| EPS (Basic) | - | 0.26 | -0.31 | 0.22 | 0.16 | 1.27 | 0.05 | 0.09 | 0.66 | -0.10 | 0.78 |
| Diluted Shares Outstanding | 22.5M | 22.57M | 22.26M | 20.16M | 18.82M | 19.02M | 66.18M | 48.22M | 16.15M | 16.05M | 16.48B |
| Basic Shares Outstanding | 22.5M | 22.45M | 22.26M | 19.84M | 18.68M | 18.87M | 66.18M | 48.22M | 16.15M | 16.05M | 15.06B |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
High Operating Margin Volatility
As indicated by the historical income statement data, POWR experienced substantial revenue fluctuations, peaking at 150.0M in 2015Q4 before contracting to 105.2M in 2016Q1, suggesting that top-line performance remains highly sensitive to underlying market conditions rather than demonstrating a consistent, predictable growth trajectory.
The erratic revenue pattern suggests that the fund's underlying assets may be subject to cyclical or event-driven demand shifts. Investors should monitor whether these swings represent structural instability or merely temporary adjustments in the broader power infrastructure investment landscape.
Based on reported financial figures, gross margins for the entity deteriorated from a peak of 27.8% in 2014Q3 to 8.8% by 2016Q1, highlighting a concerning trend in the fund's ability to maintain profitability relative to its revenue base during periods of market stress.
This sharp contraction in gross margins appears to indicate a lack of pricing power or an inability to effectively manage costs during revenue downturns. The decline warrants further investigation into whether this reflects a fundamental shift in the cost structure of the underlying holdings.
According to the provided quarterly statements, the operating margin swung from a positive 3.4% in 2015Q3 to a negative 14.4% in 2016Q1, demonstrating that the entity lacks the operating leverage necessary to protect bottom-line results when revenue growth faces downward pressure.
The inability to scale SG&A expenses in proportion to revenue suggests that the cost base is relatively fixed, which exacerbates losses during revenue contractions. This lack of operational flexibility may indicate that the entity is highly vulnerable to even minor fluctuations in top-line performance.
As reported in the income statement history, the entity's net income frequently dipped into negative territory, with a net loss of 9.9M in 2016Q1, suggesting that the business model may struggle to achieve consistent profitability without significant and sustained improvements in operational efficiency.
Short-term profitability spikes appear to be outliers rather than evidence of a sustainable earnings trend. The recurring nature of these losses suggests that the current operational framework may be fundamentally misaligned with the revenue generation capabilities of the underlying portfolio.
Quick answers to the most common questions about buying POWR stock.
iShares U.S. Power Infrastructure ETF (POWR) is profitable, generating $5.8M in net income for the fiscal year ending 2015 with a net profit margin of 1.3%.
iShares U.S. Power Infrastructure ETF (POWR) reported an operating income of $11.0M, resulting in an operating profit margin of 2.5%. This margin reflects the operational efficiency of the business before interest and taxes.
iShares U.S. Power Infrastructure ETF (POWR) generated $101.2M in gross profit for the year, representing a gross profit margin of 22.8%. This demonstrates the company's core pricing power and production efficiency.