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Waukesha, Wisconsin-based Generac Holdings Inc. (GNRC) is a manufacturer of power generation equipment, energy storage systems, and other power products including portable, residential, commercial and industrial generators. With a market cap of $10.1 billion, Generac’s operations span various countries in the Americas, Asia, and Europe. It is expected to announce its Q3 earnings before the market opens on Thursday, Oct. 31.
Ahead of the event, analysts expect Generac to report a profit of $1.98 per share, up 20.7% from $1.64 per share reported in the year-ago quarter. The company has surpassed Wall Street’s bottom-line projections in three of the past four quarters while missing on another occasion. Its adjusted EPS for the last reported quarter grew 25% year-over-year to $1.35, exceeding the consensus estimates by 8.9%.
For fiscal 2024, analysts expect Generac to report an adjusted EPS of $6.49, up 20.2% from $5.40 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 25.6% year-over-year to $8.15.
GNRC stock has surged 28.5% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 21.8% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 19.1% returns over the same time frame.
Shares of Generac Holdings experienced marginal gains after the release of its Q2 earnings on Jul. 31. The company reported a massive 21% year-over-year growth in adjusted net income attributable to shareholders, reaching $81.7 million. The surge in earnings was primarily driven by the 7.3% reduction in the cost of goods sold, falling to $622.6 million, leading to a net margin expansion of 137 basis points to 5.9% compared to the year-ago quarter.
However, the company’s net sales experienced a marginal decline compared to the year-ago quarter to $998.2 million, falling short of Wall Street’s topline estimates. Following the initial uptick in prices, Generac’s stock prices plummeted over 12% in the next five trading sessions.
The consensus opinion on GNRC stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 24 analysts covering the stock, 12 recommend a “Strong Buy,” one advises a “Moderate Buy,” nine suggest a “Hold,” one advocates a “Moderate Sell,” and one gives a “Strong Sell” rating. The mean price target of $169.52 represents a potential upside of 2.1% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
