/Generac%20Holdings%20Inc%20portable%20generator%20by-%20Lissandra%20Melo%20via%20Shutterstock.jpg)
With a market cap of $9.2 billion, Generac Holdings Inc. (GNRC) manufactures power generation equipment, energy storage systems, and other power products including portable, residential, commercial, and industrial generators. The Waukesha, Wisconsin-based company is expected to announce its Q2 earnings before the market opens on Wednesday, Jul. 31.
Ahead of the event, analysts expect Generac to report a profit of $1.24 per share, up 14.8% from $1.08 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in two of the past four quarters while missing on two other occasions. GNRC reported an EPS of $0.88 in Q1, exceeding the consensus estimates by 22.2%.
In fiscal 2024, analysts expect Generac to report an EPS of $6.16, up 14.1% from $5.40 in fiscal 2023. Looking forward to fiscal 2025, its EPS is expected to grow 30.8% year over year to $8.06.
GNRC stock is up 17.7% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 13.7% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 8.6% returns over the same time frame.
Generac stock fell 6.1% on May 1 following its Q1 earnings report. While revenue remained almost flat year over year, net income increased 87%. The company's cautious 3% to 7% growth forecast for fiscal 2024 has raised investor concerns.The consensus opinion on Generac stock is cautiously optimistic, with an overall “Moderate Buy” rating. Among 26 analysts covering the stock, 13 recommend “Strong Buy,” one advises “Moderate Buy,” nine suggest “Hold,” one suggests “Moderate Sell,” and two have a “Strong Sell rating. This configuration is less bullish than three months ago when 16 analysts recommended a “Strong Buy.” Currently, GNRC is trading above the average analyst price target of $143.95.
On the date of publication, Sohini Mondal 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.
