Power generation products company Generac (NYSE: GNRC) will be reporting results this Wednesday before market open. Here’s what to look for.
Generac missed analysts’ revenue expectations last quarter, reporting revenues of $1.09 billion, down 11.6% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income 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 5.9% increase it recorded in the same quarter last year.
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 multiple 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. LSI delivered year-on-year revenue growth of 13.6%, beating analysts’ expectations by 9%, and GE Vernova reported revenues up 16.3%, topping estimates by 0.8%. LSI traded up 6.7% following the results while GE Vernova was also up 16.2%.
Read our full analysis of LSI’s results here and GE Vernova’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 15.1% on average over the last month. Generac is up 19.3% during the same time and is heading into earnings with an average analyst price target of $248.53 (compared to the current share price of $221.33).
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