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Factors to Note Ahead of Generac's (GNRC) Q3 Earnings Release
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Generac Holdings Inc (GNRC - Free Report) will report third-quarter 2022 results on Nov 2.
On Oct 19, Generac released preliminary financial results for the third quarter ended Sep 30. Pressured sales in the Residential Products business and a bankruptcy filing by a large customer hurt its clean energy product shipments in the third quarter.
Though sales rose 15% to about $1.09 billion compared with $943 million in the prior-year quarter, the metric fell short of the company’s expectations.
Preliminary adjusted net income was approximately $1.75 per share, down 25.5% during the third quarter compared with $2.35 per share in the prior-year quarter.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.09 billion, indicating a year-over-year increase of 15.5%.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 6.7%. In the past year, shares of the company have lost 76.9%, compared with the industry’s decline of 81.3%.
Image Source: Zacks Investment Research
Key Factors
Generac recently reported third-quarter preliminary results, which benefited from continued demand for Commercial & Industrial product shipments. Synergies from acquisitions are likely to have acted as tailwind.
However, Generac noted that Residential product sales were under pressure during the quarter, despite Commercial & Industrial product shipments performing as anticipated. The installation capacity for residential standby generators continued to rise, as mentioned on the company’s second-quarter earnings call but still fell short of production output.
Although end customer demand is still high due to elevated power outages, most notably those caused by Hurricane Ian, it fell short of the company’s production output. This led to greater field inventory levels and lower home standby generator orders from the company’s channel partners than anticipated, per a company report.
Shipments of clean energy products were also highly impacted during the quarter by a leading customer stopping operations and filing for bankruptcy protection.
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 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
The Zacks Consensus Estimate for Fortinet’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $1.12 billion, respectively. Shares of FTNT have lost 12% in the past year.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.31% and presently carries a Zacks Rank #3. CDW is slated to release quarterly numbers on Nov 2.
The Zacks Consensus Estimate for CDW’s to-be-reported quarter’s earnings and revenues is pegged at $2.52 per share and $6.21 billion, respectively. Shares of CDW have lost 7.8% in the past year.
Expedia (EXPE - Free Report) has an Earnings ESP of +8.44% and presently carries a Zacks Rank #2. Expedia is slated to release quarterly numbers on Nov 3.
The Zacks Consensus Estimate for EXPE’s to-be-reported quarter’s earnings and revenues is pegged at $3.87 per share and $3.56 billion, respectively. Shares of EXPE have lost 42.1% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Factors to Note Ahead of Generac's (GNRC) Q3 Earnings Release
Generac Holdings Inc (GNRC - Free Report) will report third-quarter 2022 results on Nov 2.
On Oct 19, Generac released preliminary financial results for the third quarter ended Sep 30. Pressured sales in the Residential Products business and a bankruptcy filing by a large customer hurt its clean energy product shipments in the third quarter.
Though sales rose 15% to about $1.09 billion compared with $943 million in the prior-year quarter, the metric fell short of the company’s expectations.
Preliminary adjusted net income was approximately $1.75 per share, down 25.5% during the third quarter compared with $2.35 per share in the prior-year quarter.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.09 billion, indicating a year-over-year increase of 15.5%.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 6.7%. In the past year, shares of the company have lost 76.9%, compared with the industry’s decline of 81.3%.
Image Source: Zacks Investment Research
Key Factors
Generac recently reported third-quarter preliminary results, which benefited from continued demand for Commercial & Industrial product shipments. Synergies from acquisitions are likely to have acted as tailwind.
However, Generac noted that Residential product sales were under pressure during the quarter, despite Commercial & Industrial product shipments performing as anticipated. The installation capacity for residential standby generators continued to rise, as mentioned on the company’s second-quarter earnings call but still fell short of production output.
Although end customer demand is still high due to elevated power outages, most notably those caused by Hurricane Ian, it fell short of the company’s production output. This led to greater field inventory levels and lower home standby generator orders from the company’s channel partners than anticipated, per a company report.
Shipments of clean energy products were also highly impacted during the quarter by a leading customer stopping operations and filing for bankruptcy protection.
Generac Holdings Inc. Price and EPS Surprise
Generac Holdings Inc. price-eps-surprise | Generac Holdings Inc. Quote
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 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Fortinet (FTNT - Free Report) has an Earnings ESP of +2.44% and presently carries a Zacks Rank #2. Fortinet is slated to release quarterly numbers on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Fortinet’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $1.12 billion, respectively. Shares of FTNT have lost 12% in the past year.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.31% and presently carries a Zacks Rank #3. CDW is slated to release quarterly numbers on Nov 2.
The Zacks Consensus Estimate for CDW’s to-be-reported quarter’s earnings and revenues is pegged at $2.52 per share and $6.21 billion, respectively. Shares of CDW have lost 7.8% in the past year.
Expedia (EXPE - Free Report) has an Earnings ESP of +8.44% and presently carries a Zacks Rank #2. Expedia is slated to release quarterly numbers on Nov 3.
The Zacks Consensus Estimate for EXPE’s to-be-reported quarter’s earnings and revenues is pegged at $3.87 per share and $3.56 billion, respectively. Shares of EXPE have lost 42.1% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.