Generac Holdings: Anticipating Growth Amid Recent Stock Declines
Generac Holdings Inc. (GNRC), based in Waukesha, Wisconsin, specializes in manufacturing power generation and energy storage equipment. The company’s portfolio includes a wide range of generators—portable, residential, commercial, and industrial. Currently holding a market capitalization of $6.6 billion, Generac operates across various markets in the Americas, Asia, and Europe. On Wednesday, April 30, prior to market opening, GNRC is scheduled to release its first-quarter results.
Anticipated Earnings and Revenue Growth
Ahead of this announcement, analysts forecast that Generac will report an adjusted profit of $0.97 per share, which reflects a 10.2% increase from last year’s corresponding profit of $0.88 per share. Notably, the company has outperformed analysts’ earnings expectations in each of the past four quarters, underscoring its consistent performance.
For the full fiscal year of 2025, projections indicate that GNRC will achieve an adjusted earnings per share (EPS) of $7.74, representing an increase of 6.5% from the $7.27 EPS reported in fiscal 2024. Furthermore, expectations for fiscal 2026 include a year-over-year earnings growth of 14.9%, bringing the anticipated EPS to $8.89.
Stock Performance Analysis
In the past year, GNRC shares have declined by approximately 17%. This performance lags behind the S&P 500 Index’s gains of 8.2% and the Industrial Select Sector SPDR Fund’s (XLI) returns of 5.7% within the same period.
Following the release of its fourth-quarter earnings on February 12, GNRC shares surged by 7.6%. The company reported net sales of $1.2 billion, marking a 16% increase that aligned with market expectations. The adjusted EPS for this quarter stood at $2.80, representing a substantial increase of 35.7% from the same quarter last year, and exceeding consensus estimates by 12%.
Additionally, due to a favorable sales mix and reduced input costs, GNRC’s gross profit rose by 29% year-over-year to $501.4 million. The company also achieved an all-time high in cash flow from operations, totaling $339.5 million, a 7.1% increase from the previous year, further demonstrating its operational strengths.
Analyst Outlook
The overall consensus on GNRC stock leans moderately bullish, reflecting a “Moderate Buy” rating. Among the 26 analysts who cover the stock, there are 14 “Strong Buys,” one “Moderate Buy,” nine “Holds,” one “Moderate Sell,” and one “Strong Sell.” The average price target for GNRC stock stands at $165.68, indicating a potential upside of 45.6% from current levels.
On the date of publication, Aditya Sarawgi had no positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
