Generac Holdings Earnings: Here’s Why Investors are Excited Now

Generac Holdings Inc. (NYSE:GNRC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 8.75%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Generac Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 26.04% to $1.21 in the quarter versus EPS of $0.96 in the year-earlier quarter.

Revenue: Rose 35.66% to $399.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Generac Holdings Inc. reported adjusted EPS income of $1.21 per share. By that measure, the company beat the mean analyst estimate of $0.96. It beat the average revenue estimate of $365.83 million.

Quoting Management: “We have started 2013 with yet another record quarter in revenues and earnings,” said Aaron Jagdfeld, President and CEO at Generac. “Organic revenue growth continues to be very strong and broad based across all major regions of the United States as the market for standby generators continues to expand with more homeowners and businesses becoming aware of the importance of having a backup power solution. We believe the significant growth that we delivered during the quarter has further elevated the Generac brand as being the household name in backup power. Additionally, we took the initial steps in accelerating our Latin American expansion efforts with the first full quarter of the Ottomotores acquisition and we’re excited about the opportunity to execute on the potential revenue and cost synergies of the combined companies.”

Key Stats (on next page)…

Revenue increased 16.84% from $342.02 million in the previous quarter. EPS increased 39.08% from $0.87 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.66 to a profit $0.67. For the current year, the average estimate has moved up from a profit of $2.96 to a profit of $3.17 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]