Generac Holdings Gears Up for Earnings Call: Analysts Anticipate Strong Performance

Generac Holdings Inc. (GNRC), based in Waukesha, Wisconsin, is a key player in the energy technology sector. With a market capitalization of $9.6 billion, the company specializes in designing, manufacturing, and distributing generators for residential, commercial, industrial, and telecommunications applications. Investors are keenly awaiting its fiscal fourth-quarter earnings announcement, scheduled for Wednesday, Feb. 12.

Analysts Predict Positive Earnings Growth

Before the earnings call, analysts are expecting GNRC to post a profit of $2.47 per share on a diluted basis. This represents a 19.3% increase from the $2.07 per share reported in the same quarter last year. Historically, the company has outperformed expectations, beating consensus estimates in three out of the last four quarters, with one miss.

Strong Performance Forecasted for Full Year

For the entire fiscal year, predictions suggest earnings per share (EPS) will reach $6.91, marking a 28% increase from $5.40 in fiscal 2023. Furthermore, GNRC’s EPS is anticipated to climb 19.4% year-over-year to $8.25 in fiscal 2025.

Stock Performance Surges Past Major Indices

GNRC shares have demonstrated robust performance, rising 40.4% over the past year, significantly outpacing the S&P 500’s gains of 25%. Similarly, the stock has outperformed the Industrial Select Sector SPDR Fund (XLI), which recorded a similar 25% increase during the same period.

Demand for Power Products Drives Growth

The company’s impressive performance can be attributed to a rising demand for home standby and portable generators, spurred by frequent power outages. In response, GNRC has invested in boosting production and expanding its dealer network, primarily focusing on the residential market. Their ecobee brand has introduced new, cost-effective smart thermostats and security solutions to meet consumer demands. Additionally, GNRC is venturing into clean energy solutions and battery systems, aligning with the growing trend of reducing dependence on traditional grid power. Recent acquisitions, including PowerPlay Battery Energy Storage Systems and Ageto, are poised to strengthen GNRC’s foothold in the commercial energy storage sector.

Recent Results Reflect Strong Demand

On Oct. 31, GNRC’s stock experienced a slight uptick following the release of its Q3 results. The company reported an adjusted EPS of $2.25, surpassing Wall Street’s expectation of $1.98. Its revenue also exceeded forecasts, reaching $1.17 billion against a prediction of $1.16 billion.

Analysts Favorable Outlook

The overall sentiment among analysts towards GNRC stock is moderately optimistic, with a “Moderate Buy” rating. Out of 25 analysts monitoring GNRC, 12 recommend a “Strong Buy,” one a “Moderate Buy,” nine suggest a “Hold,” one proposes a “Moderate Sell,” and two advocate for a “Strong Sell.” The average analyst price target sits at $179.09, indicating a potential upside of 9.2% from current trading levels.

On the date of publication,
Neha Panjwani
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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