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Generac (GNRC) Forms Energy Technology Organization for Growth

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Generac Holdings Inc. (GNRC - Free Report) recently announced that it has established a new business organization as part of its ‘Powering Our Future’ strategy. The company has appointed three executives to new positions. The news drove the stock price 5.8% higher on Jan 19.

Headquartered in Waukesha, WI, Generac is a leading global supplier of backup power and prime power products, engine-powered tools and solar energy storage systems.

Named Energy Technology (“ET”), the new organization will comprise all Generac’s businesses, which mainly focuses on products or services related to storage and energy management products. These consist of Generac’s acquired Pika Energy, Neurio Technologies and Enbala Power Networks as well as its existing connectivity business.

The combination of these teams into one operating group will help position the company as an emerging leader in the energy storage and management industry. It will also align business priorities and accelerate Generac’s go-to-market efforts. The ET organization will serve as the operating platform for future potential acquisitions in the energy technology industry.

Russ Minick will lead the ET organization as the president. The team will collaborate with Generac’s business groups to deliver a wide range of clean energy products and services to end markets globally. Minick will also retain his duties as a chief marketing officer.  Patrick Forsythe has been appointed to the newly created position of the chief technical officer. Steve Goran has been appointed chief strategy officer.

Changes in the energy landscape, abundance of natural gas, aging power infrastructure and deployment of superfast 5G technology are likely to spur secular growth opportunities for Generac. The company aims to capitalize on these key growth drivers by generating more sales through higher market penetration and continued focus on research and development to foster innovation.

A diversified distribution channel further ensures that the products reach a global customer base. Notably, the company has the largest network of factory direct independent generator dealers in the industry in North America.

The company leverages its experience and core competencies to strengthen its position in the emerging residential energy storage and monitoring markets. It aims to diversify its business model from being sole ‘equipment centric’ to a systems and services provider through connectivity solutions and subscription-based applications.

Generac’s shares have soared 161.1% in the past year compared with 109.9% growth of the industry. The company delivered a trailing four-quarter positive earnings surprise of 24.9%, on average.

The stock currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader industry are Corning (GLW - Free Report) , Arista Networks (ANET - Free Report) and Airgain (AIRG - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Corning delivered a trailing four-quarter positive earnings surprise of 40.7%, on average.

Arista delivered a trailing four-quarter positive earnings surprise of 9.5%, on average.

Airgain delivered a trailing four-quarter positive earnings surprise of 62.5%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.

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