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Generac (GNRC) to Report Q4 Earnings: What's in the Cards?

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Generac Holdings Inc. (GNRC - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 11, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 18.9%. It pulled off a trailing four-quarter earnings surprise of 24.9%, on average.

The Waukesha, WI-based company is expected to have recorded higher revenues year over year. The performance is likely to have been primarily driven by growth in sales of home standby and portable generators. It continues to benefit from unprecedented residential product demand, led by the ‘Home as a Sanctuary’ trend as people are spending more time at home.

During the quarter under review, Generac acquired Denver, CO-based Enbala Power Networks Inc. — a leading distributed energy resources technology company. The buyout has advanced the company’s capabilities into the rapidly growing virtual power plant and smart grid services markets.

For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $726 million, indicating growth of 22.8% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at $1.96, which suggests a rise of 28.1%.

What Our Model Says

Our proven model doesn’t conclusively 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Generac’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -1.28% as the former is pegged at $1.93 and the latter at $1.96.

Generac Holdings Inc. Price and EPS Surprise

Generac Holdings Inc. Price and EPS Surprise

Generac Holdings Inc. price-eps-surprise | Generac Holdings Inc. Quote

Zacks Rank: Generac currently carries a Zacks Rank #3.

Stocks to Consider

Here are some 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:

YETI Holdings, Inc. (YETI - Free Report) is slated to release fourth-quarter 2020 results on Feb 11. It has an Earnings ESP of +6.91% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Forward Air Corporation (FWRD - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 11. The company has an Earnings ESP of +1.37% and carries a Zacks Rank #2.

GoDaddy Inc. (GDDY - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank of 2. The company is set to report fourth-quarter 2020 results on Feb 11.

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