Generac Holdings Inc GNRC will report third-quarter 2024 results on Oct. 31, before market open.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.16 billion, up 8.2% from the prior-year reported number. The company expects third-quarter overall sales to be up in the high single-digit range. The Zacks Consensus Estimate for earnings is pegged at $1.98 per share, up 20.7% year over year. The estimate has increased a cent in the past 60 days.
GNRC beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average earnings surprise of 9.8%. In the past year, shares of the company have gained 99.9% compared with the sub-industry’s growth of 38%.
Image Source: Zacks Investment Research
Factors Shaping GNRC's Upcoming Results
Generac’s third-quarter performance is likely to have been boosted by a surge in demand for home standby generators amid increasing power outage activity caused by hurricanes. GNRC has been focusing on boosting production rates for home standby generators to meet higher demand.
Residential product sales jumped 8% year over year in the last reported quarter. The Zacks Consensus Estimate for Residential products' third quarter revenues is pegged at $688 million, up 21.8% year over year.
Ecobee has been gaining momentum in the smart thermostat market owing to the expansion of partnerships with important retail partners. Healthy adoption of Ecobee products is expected to have contributed to GNRC’s top-line expansion in the to-be-reported quarter.
Margin performance is likely to have been buoyed by a favorable sales mix (due to solid home standby shipments), enhanced production efficiencies, reduced input costs and higher pricing.
Generac Holdings Inc. Price and EPS Surprise
Generac Holdings Inc. price-eps-surprise | Generac Holdings Inc. Quote
Shipments of C&I generators through the North American distributor channel have been picking up pace. This is anticipated to have acted as another tailwind. However, softness in the domestic telecom and rental markets remains a concern. The Zacks Consensus Estimate for C&I products' revenues is pegged at $349 million, down 9.4% year over year.
Management anticipates continued downtrends for residential energy technology products and solutions throughout 2024. This is mainly due to the troubled residential solar and storage market owing to structural modifications to California's net metering program and rising borrowing costs.
Volatile macroeconomic conditions, stiff competition, along with increasing operating costs (mainly due to higher marketing spending and research and development expenses) remain concerning for Generac.
GNRC's Key Recent Developments
On Oct. 15, 2024, Generac’s subsidiary ecobee launched the ecobee Smart Thermostat Lite. This durable thermostat offers enhanced reliability as it does not need charging or an extra power source. It is now available exclusively through professional distribution channels.
On Sept. 10, 2024, Generac introduced the PWRcell 2 Home Energy Storage System, including the PWRcell 2 and PWRcell 2 MAX. These innovative products offer enhanced power and reliability, along with smarter and more resilient solutions, giving homeowners more control and flexibility in using sustainable energy sources.
On Aug. 5, 2024, Generac announced the acquisition of Ageto. The buyout, which was officially settled on Aug 1, 2024, is likely to have boosted Generac’s position in the C&I market. It has been collaborating with Ageto since 2021 by incorporating the latter’s microgrid controllers into its Battery Energy Storage Systems and generator sets.
Earnings Whispers for GNRC
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. This is not the case here.
Generac has an Earnings ESP of -0.80% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are a few stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season.
Paylocity Holding Corporation PCTY currently has an Earnings ESP of +1.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PCTY is scheduled to report quarterly earnings on Oct. 30. The Zacks Consensus Estimate for PCTY’s to-be-reported quarter’s earnings and revenues is pegged at $1.39 per share and $356.5 billion, respectively. Shares of PCTY have lost 1.4% in the past year.
Crocs, Inc. CROX presently has an Earnings ESP of +0.61% and a Zacks Rank #2. CROX is scheduled to report quarterly numbers on Oct. 29. The Zacks Consensus Estimate for CROX’s to-be-reported quarter’s earnings and revenues is pegged at $3.13 per share and $1.05 billion, respectively. Shares of CROX have risen 52.9% in the past year.
Visa Inc. V has an Earnings ESP of +0.05% and a Zacks Rank #3 at present. Visa is scheduled to report quarterly figures on Oct. 29. The Zacks Consensus Estimate for Visa’s to-be-reported quarter’s earnings and revenues is pegged at $2.58 per share and $9.49 billion, respectively. Shares of V have increased 20.9% in the past year
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>Visa Inc. (V) : Free Stock Analysis Report
Crocs, Inc. (CROX) : Free Stock Analysis Report
Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
