Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

Laser Focus World Membership

Never miss any articles, videos, podcasts, or webinars by signing up for membership access to Laser Focus World online. You can manage your preferences all in one place—and provide our editorial team with your valued feedback.

Magazine Subscription

Can you subscribe to receive our print issue for free? Yes, you sure can!

Newsletter Subscription

Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

Get Published!

If you’d like to write an article for us, reach out with a short pitch to Sally Cole Johnson: [email protected]. We love to hear from you.

Photonics Hot List

Laser Focus World produces a video newscast that gives a peek into what’s happening in the world of photonics.

Following the Photons: A Photonics Podcast

Following the Photons: A Photonics Podcast dives deep into the fascinating world of photonics. Our weekly episodes feature interviews and discussions with industry and research experts, providing valuable perspectives on the issues, technologies, and trends shaping the photonics community.

Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Generac Powers Ahead on the Electrification Mega-Trend

Photo of a large generator. Generac Leads Electrification: Key Strategies and Impact.Generac Holdings Inc. (NYSE: GNRC) is attempting to recover from its Q1 2024 earnings selloff. The computer and technology sector company is a leader in manufacturing backup power generators with a 70% market share. It has expanded its offerings to include a range of clean energy, battery and monitoring products. Like many companies in the post-pandemic era, Generac is dealing with an inventory glut as normalization sets in. However, the company is also a major benefactor of the electrification trend, the aging electrical grid, and the growth of mission-critical data centers.

Generac's main competitors include Briggs & Stratton Co. (NYSE: BGG), Cummins Inc. (NYSE: CMI) and Terex Co. (NYSE: TEX).

Normalization Gains Footing

The company provides energy solutions in all shapes, sizes, and price points, from portable generators to systems as large as a room. Its business is known to be cyclical and reliant on consumer confidence. High interest rates, a weak housing market, rising materials costs, and low consumer discretionary spending took a major toll on its revenues from 2022 to 2023. However, all the indications point toward a turnaround as inflation continues to fall and the hope of interest rate cuts. 

Benefitting from Grid 2.0

Generac cites several significant mega-trends from which the company will benefit. One of them, Grid 2.0, is the evolution of the traditional electrical utility model. The supply and demand imbalances call for the adoption of renewable energy generation and the “electrification of everything." This includes grid decarbonization, decentralization, migration towards distributed energy resources, and digitization.

Generac CEO Aaron Jagdfeld explained, “Power security concerns have never been more apparent as the electrification of everything, deployment of energy-intensive data centers and rising long-term trend of severe weather events pressure the aging electrical grid that is increasingly reliant on intermittent renewable power generation."

Chart showing how Generac sold off on earnings results as the daily ascending triangle breakdown digest.

Daily Ascending Triangle

GNRC formed a daily ascending triangle breakdown pattern. The ascending trendline formed at the $126.46 support on April 16, 2024, and rose with higher lows for nine consecutive days to the flat-top resistance at $140.34. The Q1 2024 earnings results caused shares to collapse through the ascending trendline, falling to a double-bottom support near $125.57. The daily relative strength index (RSI) bounced through the 50-band. Pullback support levels are at $128.75, $125.57, $118.63 and $112.25.

Solid Q1 2024 Results

Generac reported Q1 2024 EPS of 88 cents, beating analyst estimates of 76 cents by 12 cents. Net income was $26 million. Revenues ticked 0.2% YoY to $889.27 million, beating $886.6 million consensus estimates. Gross profit margin rose to 35.6% versus $30.7% in the year-ago period due to lower cost inputs, favorable product mix and production efficiencies. Residential product sales rose 2% YoY to $429 million. Commercial & Industrial sales fell 2% to $354 million.

Reaffirms Guidance

Generac reaffirmed guidance for full year 2024, with revenues of 3% to 7% revenue growth. This equates to $4.14 billion to $4.30 billion versus $4.21 billion consensus estimates. Generac anticipates a slightly favorable impact from forex and acquisitions. Net income margin is expected to be around 6% to 7%. The corresponding adjusted EBITDA margin is expected to be around 16.5% to 17.5%, unchanged. Strong operating and free cash flow is expected as the conversion of free cash flow generated will be nearly equal to adjusted net income.

CEO Insights

CEO Jagdfeld pointed out that shipments and activations were aligned at the end of Q1 2024. This signals that field inventory levels are reaching normalized levels. The removal of excess field inventory will amount to strong YoY growth in home generator sales this year. Power outage activity in the United States was in line historically. Home consultations rose more than 3.5X Q1 2019 pre-COVID levels. Close rates improved moderately on a sequential basis.

Generac ended the quarter with 8,800 residential dealers, up 100 in the quarter. Jagdfeld concluded that the recent acceleration in data center construction activity driven by the artificial intelligence AI trend has increased supply/demand imbalances, which lends to the electrification mega-trend.

Generac analyst ratings and price targets can be found at MarketBeat.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.