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Generac (GNRC) To Report Earnings Tomorrow: Here Is What To Expect

GNRC Cover Image

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

Generac missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $1.23 billion, up 16.1% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS 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 3.4% year on year to $919.6 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.97 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 electrical equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Enphase delivered year-on-year revenue growth of 35.2%, missing analysts’ expectations by 1.6%, and Bel Fuse reported revenues up 18.9%, topping estimates by 1.6%. Enphase traded down 15.8% following the results while Bel Fuse was up 3.4%.

Read our full analysis of Enphase’s results here and Bel Fuse’s results here.

Investors in the electrical equipment segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Generac is down 10.6% during the same time and is heading into earnings with an average analyst price target of $166.34 (compared to the current share price of $113.25).

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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