Back to top

Analyst Blog

Shares of Generac Holdings Inc. (GNRC - Snapshot Report) hit a new 52-week high of $41.48 on Jun 7 and eventually closed at $40.93. Shares of this diversified machinery company have been gaining momentum since it reported solid first quarter 2013 results on May 2.

Year-to-date, share prices have recorded a healthy return of 19.3%. The company’s long-term estimated EPS growth rate is 10.3%. Average volume of shares traded over the last three months came in at approximately 932K.

Solid First Quarter Performance

Generac posted impressive results for the first quarter of 2013 with earnings per share of $1.21, beating the Zacks Consensus Estimate by 23.5%. Earnings escalated 26.0% year over year due to increased sales and improved margins.  

Soaring demand from households for back up power and the acquisition of Ottomotores raised the revenues in the quarter by 35.7% to $399.6 million. Revenues surpassed the Zacks Consensus Estimate of $360.0 million by a comfortable margin.

Management seems satisfied with the results, increasing its guidance for the year. The estimated revenue increase for 2013 over 2012 was roughly 10.0%, previously. However, the rate of increase is now expected in a low-mid teen percentage range.

Moreover, the consensus estimates for Generac have mostly moved upwards for 2013 while moving in either direction for 2014, subsequent to the earnings. The Zacks Consensus Estimate for 2013 has increased 7.5% to $3.42, however, moving up by only a penny to $3.37 for 2014, over the last sixty days.

Other Stocks to Consider

Generac has a market capitalization of $2.80 billion and carries a Zacks Rank #2 (Buy). Other stocks worth a look in the industry are Graco Inc. (GGG - Snapshot Report), carrying a Zacks Rank #1 (Strong Buy); whereas, Broadwind Energy, Inc. (BWEN - Snapshot Report) and Colfax Corporation (CFX - Analyst Report) carry a Zacks Rank #2 (Buy), each.

Please login to Zacks.com or register to post a comment.