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Generac (GNRC) Q4 Earnings Report Preview: What To Look For

GNRC Cover Image

Power generation products company Generac (NYSE: GNRC) will be reporting results tomorrow morning. Here’s what you need to know.

Generac beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $1.17 billion, up 9.6% year on year. It was an exceptional quarter for the company, with 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 16.9% year on year to $1.24 billion, improving from the 1.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.53 per share.

Generac Total Revenue

Analysts covering the company have generally 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 five times over the last two years.

Looking at Generac’s peers in the renewable energy segment, some have already reported their Q4 results, giving us a hint as to what we can expect. American Superconductor delivered year-on-year revenue growth of 56%, beating analysts’ expectations by 8.4%, and Nextracker reported a revenue decline of 4.4%, topping estimates by 3.6%. American Superconductor traded up 33.9% following the results while Nextracker was also up 24.3%.

Read our full analysis of American Superconductor’s results here and Nextracker’s results here.

There has been positive sentiment among investors in the renewable energy segment, with share prices up 2.4% on average over the last month. Generac is down 9.4% during the same time and is heading into earnings with an average analyst price target of $173.51 (compared to the current share price of $144.60).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

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