Generac Holdings Earnings: Here’s Why the Stock is Rising 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 7%.

Generac Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 63.79% to $0.95 in the quarter versus EPS of $0.58 in the year-earlier quarter.

Revenue: Rose 44.98% to $346.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Generac Holdings Inc. reported adjusted EPS income of $0.95 per share. By that measure, the company beat the mean analyst estimate of $0.76. It beat the average revenue estimate of $328.41 million.

Quoting Management: “Our second quarter results continue to demonstrate the success we are experiencing in executing our Powering Ahead strategic plan,” said Aaron Jagdfeld, President and Chief Executive Officer. “We executed on very strong organic revenue growth again this quarter which was broad based across our major product categories and all significant regions of the United States. Our growth was driven by continuing adoption of home standby generators, the further expansion of our distribution, and increasing demand within certain of our commercial and industrial end markets. When you combine our organic growth initiatives with our recent acquisitions, we are driving a new and higher baseline of demand for our products, while also becoming a more balanced company with global scale.”

Key Stats (on next page)…

Revenue decreased 13.23% from $399.57 million in the previous quarter. EPS decreased 21.49% from $1.21 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 $0.78 to a profit $0.79. For the current year, the average estimate has moved up from a profit of $3.17 to a profit of $3.47 over the last ninety days.

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

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