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What to Expect Ahead of Generac's (GNRC) Q4 Earnings Release?
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Generac Holdings Inc. (GNRC - Free Report) will report fourth-quarter 2021 results on Feb 16.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.02 billion, indicating a year-over-year increase of 34.1%.
The Zacks Consensus Estimate for quarterly earnings is pinned at $2.38 per share, suggesting an increase of 12.3% year on year.
The company’s earnings beat the Zacks Consensus Estimate in three out of the trailing four quarters, the average surprise being 8.4%.
In the last reported quarter, Generac reported non-GAAP earnings of $2.35 per share compared with $2.08 per share reported in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents.
Quarterly revenues came in at $942.7 million compared with $701.4 million in the year-ago quarter. The 34.4% increase was primarily driven by broad-based growth across the Domestic and International segments together with higher demand for Residential and C&I products. However, the top line lagged the consensus mark of $960 million.
Let’s see how things have shaped up for the upcoming announcement.
Key Factors
A solid and broad-based demand environment and robust operational execution with an increased backlog are expected to have driven the top line in the to-be-reported quarter.
Continued momentum in demand for Residential and C&I products augurs well. In the last reported quarter, revenues from Residential soared 32.7% to $608.8 million. Revenues from C&I were $258.3 million, up 46.6% from the year-ago quarter’s levels.
Generac continues to witness strong demand for PWRcell energy storage systems and the Energy Technology solutions portfolio.
Demand for home standby generators is benefiting from increasing power outage and broader electrification trends. People spending more time at home due to pandemic restrictions is also driving demand for home standby generators. The company fortified its position in the energy market by offering home standby generators with Smart Grid Ready technology. The move enables its customers to sell power back to the grid and offset their energy expenses. The Smart Grid Ready capabilities are being offered through the Generac’s Enbala Concerto platform.
In October 2021, Generac rolled out an air-cooled home standby generator, Guardian 26kW Home Standby Generator, which is Smart Grid Ready and enables customers to connect to grid programs, thereby offsetting energy costs.
Synergies from the recent acquisitions are also expected to have positively impacted the top line in the fourth quarter. In December 2021, Generac acquired ecobee Inc. Headquartered in Toronto, Canada, ecobee is a leader in sustainable smart home solutions.
In third-quarter 2021, Generac acquired Apricity Code Corporation for an undisclosed amount. The acquisition will bolster Generac’s efforts to provide a broader energy technology portfolio. Also, it will increase the company’s speed to market for its Clean Energy and Grid Services products and solutions.
In Sep 2021, the company also acquired a leading designer and manufacturer of energy storage products and solutions, Off Grid Energy Ltd. The technical expertise of the Off Grid Energy team will enable Generac to bolster its product roadmap.
However, pandemic-induced worldwide supply chain and logistics troubles and increasing operating costs continue to be major concerns.
What Our Model Says
Our proven model does not predict an earnings beat for Generac this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Generac has an Earnings ESP of -17.5% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Applied Materials is set to release first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for earnings is pegged at $1.85 per share, suggesting an increase of 33.1% from the prior-year quarter’s reported figure. Shares of AMAT have increased 14.3% in the past year.
NetApp (NTAP - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank of 2 at present.
NetApp is scheduled to release third-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year quarter’s levels. Shares of NTAP have increased 30.5% in the past year.
Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank of 2.
Keysight is scheduled to release first-quarter fiscal 2022 results on Feb 17. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating an increase of 9.8% from the year-ago quarter’s levels. Shares of KEYS have increased 7.6% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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What to Expect Ahead of Generac's (GNRC) Q4 Earnings Release?
Generac Holdings Inc. (GNRC - Free Report) will report fourth-quarter 2021 results on Feb 16.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.02 billion, indicating a year-over-year increase of 34.1%.
The Zacks Consensus Estimate for quarterly earnings is pinned at $2.38 per share, suggesting an increase of 12.3% year on year.
The company’s earnings beat the Zacks Consensus Estimate in three out of the trailing four quarters, the average surprise being 8.4%.
In the last reported quarter, Generac reported non-GAAP earnings of $2.35 per share compared with $2.08 per share reported in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents.
Generac Holdings Inc. Price and EPS Surprise
Generac Holdings Inc. price-eps-surprise | Generac Holdings Inc. Quote
Quarterly revenues came in at $942.7 million compared with $701.4 million in the year-ago quarter. The 34.4% increase was primarily driven by broad-based growth across the Domestic and International segments together with higher demand for Residential and C&I products. However, the top line lagged the consensus mark of $960 million.
Let’s see how things have shaped up for the upcoming announcement.
Key Factors
A solid and broad-based demand environment and robust operational execution with an increased backlog are expected to have driven the top line in the to-be-reported quarter.
Continued momentum in demand for Residential and C&I products augurs well. In the last reported quarter, revenues from Residential soared 32.7% to $608.8 million. Revenues from C&I were $258.3 million, up 46.6% from the year-ago quarter’s levels.
Generac continues to witness strong demand for PWRcell energy storage systems and the Energy Technology solutions portfolio.
Demand for home standby generators is benefiting from increasing power outage and broader electrification trends. People spending more time at home due to pandemic restrictions is also driving demand for home standby generators. The company fortified its position in the energy market by offering home standby generators with Smart Grid Ready technology. The move enables its customers to sell power back to the grid and offset their energy expenses. The Smart Grid Ready capabilities are being offered through the Generac’s Enbala Concerto platform.
In October 2021, Generac rolled out an air-cooled home standby generator, Guardian 26kW Home Standby Generator, which is Smart Grid Ready and enables customers to connect to grid programs, thereby offsetting energy costs.
Synergies from the recent acquisitions are also expected to have positively impacted the top line in the fourth quarter. In December 2021, Generac acquired ecobee Inc. Headquartered in Toronto, Canada, ecobee is a leader in sustainable smart home solutions.
In third-quarter 2021, Generac acquired Apricity Code Corporation for an undisclosed amount. The acquisition will bolster Generac’s efforts to provide a broader energy technology portfolio. Also, it will increase the company’s speed to market for its Clean Energy and Grid Services products and solutions.
In Sep 2021, the company also acquired a leading designer and manufacturer of energy storage products and solutions, Off Grid Energy Ltd. The technical expertise of the Off Grid Energy team will enable Generac to bolster its product roadmap.
However, pandemic-induced worldwide supply chain and logistics troubles and increasing operating costs continue to be major concerns.
What Our Model Says
Our proven model does not predict an earnings beat for Generac this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Generac has an Earnings ESP of -17.5% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.9% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials is set to release first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for earnings is pegged at $1.85 per share, suggesting an increase of 33.1% from the prior-year quarter’s reported figure. Shares of AMAT have increased 14.3% in the past year.
NetApp (NTAP - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank of 2 at present.
NetApp is scheduled to release third-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year quarter’s levels. Shares of NTAP have increased 30.5% in the past year.
Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank of 2.
Keysight is scheduled to release first-quarter fiscal 2022 results on Feb 17. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating an increase of 9.8% from the year-ago quarter’s levels. Shares of KEYS have increased 7.6% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.