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As we’re all very aware, 2022 was a challenging environment for many companies, with deep valuation slashes occurring regularly.
Fortunately, 2023 has certainly gotten off to a much better start, with green widespread across many areas year-to-date.
However, the outlook isn’t great for all companies, including Generac Holdings (GNRC - Free Report) . Analysts have taken a bearish stance on the company’s earnings outlook, landing the stock into a Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Generac Holdings is a manufacturer of power generation equipment, energy storage systems, and other power products, including portable, residential, commercial, and industrial generators.
How does the company currently stack up? Let’s take a closer look.
Share Performance
GNRC shares haven’t fared well over the last six months, down roughly 60% and widely lagging behind the general market.
Image Source: Zacks Investment Research
However, GNRC shares have busted out of the gate strong in 2023, up more than 12% and outperforming the S&P 500.
Image Source: Zacks Investment Research
Growth Outlook
The company is forecasted to witness quite a slowdown in growth, with estimates indicating an 11% pullback in earnings for its current fiscal year (FY22) and a further 15% in FY23.
GNRC’s top-line is in slightly better shape, with estimates indicating a positive 20% Y/Y change in FY22 but a 7% pullback in FY23.
Image Source: Zacks Investment Research
Quarterly Performance
Generac has primarily delivered better-than-expected quarterly results, exceeding earnings estimates in four consecutive quarters.
In its latest release, the company exceeded the Zacks Consensus EPS Estimate by roughly 8% but marginally fell short of revenue expectations.
Image Source: Zacks Investment Research
Bottom Line
A slowdown in growth and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
Generac Holdings (GNRC - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
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Bear of the Day: Generac Holdings (GNRC)
As we’re all very aware, 2022 was a challenging environment for many companies, with deep valuation slashes occurring regularly.
Fortunately, 2023 has certainly gotten off to a much better start, with green widespread across many areas year-to-date.
However, the outlook isn’t great for all companies, including Generac Holdings (GNRC - Free Report) . Analysts have taken a bearish stance on the company’s earnings outlook, landing the stock into a Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Generac Holdings is a manufacturer of power generation equipment, energy storage systems, and other power products, including portable, residential, commercial, and industrial generators.
How does the company currently stack up? Let’s take a closer look.
Share Performance
GNRC shares haven’t fared well over the last six months, down roughly 60% and widely lagging behind the general market.
Image Source: Zacks Investment Research
However, GNRC shares have busted out of the gate strong in 2023, up more than 12% and outperforming the S&P 500.
Image Source: Zacks Investment Research
Growth Outlook
The company is forecasted to witness quite a slowdown in growth, with estimates indicating an 11% pullback in earnings for its current fiscal year (FY22) and a further 15% in FY23.
GNRC’s top-line is in slightly better shape, with estimates indicating a positive 20% Y/Y change in FY22 but a 7% pullback in FY23.
Image Source: Zacks Investment Research
Quarterly Performance
Generac has primarily delivered better-than-expected quarterly results, exceeding earnings estimates in four consecutive quarters.
In its latest release, the company exceeded the Zacks Consensus EPS Estimate by roughly 8% but marginally fell short of revenue expectations.
Image Source: Zacks Investment Research
Bottom Line
A slowdown in growth and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
Generac Holdings (GNRC - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.