Power generation products company Generac (NYSE: GNRC) will be reporting earnings this Wednesday before the bell. Here’s what to expect.
Generac beat analysts’ revenue expectations last quarter, reporting revenues of $1.06 billion, up 12.4% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Generac a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Generac’s revenue to grow 11.2% year on year, improving from the 6.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Generac has missed Wall Street’s revenue estimates multiple 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. Allegion delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Teledyne reported revenues up 9.8%, topping estimates by 5.3%. Allegion traded up 9.6% following the results while Teledyne’s stock price was unchanged.
Read our full analysis of Allegion’s results here and Teledyne’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the electrical equipment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Generac is down 29.1% during the same time and is heading into earnings with an average analyst price target of $293.75 (compared to the current share price of $201.30).
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