Generac Holdings Inc (GNRC Quick QuoteGNRC - Free Report) will report first-quarter 2024 results on May 1, before the opening bell.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $888.2 million, mostly on par with prior-year reported number. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, up 28.6% year over year.

GNRC beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average earnings surprise of 5.5%. In the past year, shares of the company have gained 36.7% against the sub-industry’s decline of 25.4%.

Factors at Play

Generac’s first-quarter performance is likely to have been boosted by momentum in home standby generator along with higher sales from residential energy technology products and solutions (including energy management devices and services, energy storage, connectivity and home electric vehicle charging solutions).

Within this segment, Ecobee is gaining momentum in the smart thermostat market owing to the expansion of partnerships with important retail partners. Healthy adoption of Ecobee smart doorbell camera is likely to have contributed to top-line expansion in the to be reported quarter.

The Zacks Consensus Estimate for residential products' revenues is pegged at $459.6 million, up 9.8% year over year.

However, Generac’s earnings are likely to have been dented by sluggishness in the Commercial & Industrial (C&I) product market owing to softness in shipments to certain direct telecom, rental and beyond standby customers. The Zacks Consensus Estimate for C&I products' revenues is pegged at $311.5 million, down 14.3% year over year.

Volatile macroeconomic conditions, stiff competition along with increasing operating expenses remain concerning for Generac.

Earnings Whispers

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 -3.70% 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 some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Qualcomm Incorporated (QCOM Quick QuoteQCOM - Free Report) is set to release quarterly numbers on May 1. It has an Earnings ESP of +0.11% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here

The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.30 per share and $9.3 billion, respectively. Shares of QCOM have gained 43% in the past year.

The Earnings ESP for Silicon Motion Technology Corporation (SIMO Quick QuoteSIMO - Free Report) is +5.96% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on May 2.

The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s earnings and revenues is pegged at 58 cents and $18 million, respectively. Shares of SIMO have gained 19% in the past year.

The Earnings ESP for Corning Incorporated (GLW Quick QuoteGLW - Free Report) is +0.40% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Apr 30.

The Zacks Consensus Estimate for GLW’s to-be-reported quarter’s earnings and revenues is pegged at 36 cents and $3.1 billion, respectively. Shares of GLW have lost 5.4% in the past year.