Power generation products company Generac (NYSE:GNRC) will be announcing earnings results this Wednesday morning. Here’s what investors should know.
Generac beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $942.1 million, up 5.9% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Generac a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Generac’s revenue to grow 2.7% year on year to $1.03 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.34 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Generac has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Generac’s peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Enphase delivered year-on-year revenue growth of 19.7%, beating analysts’ expectations by 1.3%, and Bel Fuse reported revenues up 26.3%, topping estimates by 10.1%. Enphase traded down 14.2% following the results while Bel Fuse was up 18.8%.
Read our full analysis of Enphase’s results here and Bel Fuse’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 6.5% on average over the last month. Generac is up 8.5% during the same time and is heading into earnings with an average analyst price target of $155.71 (compared to the current share price of $155.45).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.