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Generac (GNRC) to Report Q1 Earnings: What's in the Offing?
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Generac Holdings Inc. (GNRC - Free Report) is scheduled to report first-quarter 2021 results on Apr 29, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 8.2%. Notably, it pulled off a trailing four-quarter positive earnings surprise of 24.2%, on average.
The Waukesha, WI-based company is expected to have recorded higher revenues on a year-over-year basis. Solid demand for home standby generators and PWRcell energy storage systems is a major tailwind. As certain regions are beginning to show signs of recovery post the COVID-19 mayhem, elevated shipments of aftermarket service parts might have driven Generac’s momentum in the global market while augmenting its presence in the clean energy market in the quarter.
With a resilient business model, it continues to benefit from record residential product demand, led by the ‘Home as a Sanctuary’ trend as majority of the people are spending more time at home. Also, certain restructuring initiatives, accompanied with a robust liquidity position, are expected to have enabled Generac to leverage key mega trends and expand its addressable markets while driving shareholder value. Recovering Commercial & Industrial (“C&I”) markets are likely to have further boosted Generac’s margins in the to-be-reported quarter.
Key Factors
During the quarter under review, Generac established a new business organization as part of its ‘Powering Our Future’ strategy. The company appointed three executives to new positions. Named Energy Technology (“ET”), the new organization will comprise all Generac’s businesses, which mainly focus on products or services related to storage and energy management products.
These consist of Generac’s acquired Pika Energy, Neurio Technologies and Enbala Power Networks as well as its existing connectivity business. The combination of these teams into one operating group will help position Generac as an emerging leader in the energy storage and management industry. It will also align business priorities and accelerate its go-to-market efforts. The ET organization will serve as the operating platform for future potential acquisitions in the energy technology industry.
The global designer of energy technology solutions had also announced plans to open a new manufacturing, assembly and distribution operation in Trenton, SC. The facility will support increased demand for home standby generators and related energy technologies. It will also serve as a distribution center to customers in the southeast part of the country. These significant developments are likely to have had a positive impact on the company’s top line in the first quarter.
For the to-be-reported quarter, the Zacks Consensus Estimate for total revenues is pegged at $736 million, which indicates an increase of 54.6% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at $1.89, which suggests a surge of 117.2%.
What Our Model Says
Our proven model predicts an earnings beat for Generac this season. 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 perfectly 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 +1.94% as the former is pegged at $1.93 and the latter at $1.89.
Zacks Rank: Generac currently carries a Zacks Rank #2.
Other Stocks to Consider
Here are some other 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:
EMCOR Group, Inc. (EME - Free Report) is scheduled to release first-quarter 2021 results on Apr 29. The company has an Earnings ESP of +10.26% and carries a Zacks Rank #2, at present.
United States Steel Corporation (X - Free Report) has an Earnings ESP of +29.67% and a Zacks Rank of 2. The company is set to report first-quarter 2021 results on Apr 29.
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Image: Bigstock
Generac (GNRC) to Report Q1 Earnings: What's in the Offing?
Generac Holdings Inc. (GNRC - Free Report) is scheduled to report first-quarter 2021 results on Apr 29, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 8.2%. Notably, it pulled off a trailing four-quarter positive earnings surprise of 24.2%, on average.
The Waukesha, WI-based company is expected to have recorded higher revenues on a year-over-year basis. Solid demand for home standby generators and PWRcell energy storage systems is a major tailwind. As certain regions are beginning to show signs of recovery post the COVID-19 mayhem, elevated shipments of aftermarket service parts might have driven Generac’s momentum in the global market while augmenting its presence in the clean energy market in the quarter.
With a resilient business model, it continues to benefit from record residential product demand, led by the ‘Home as a Sanctuary’ trend as majority of the people are spending more time at home. Also, certain restructuring initiatives, accompanied with a robust liquidity position, are expected to have enabled Generac to leverage key mega trends and expand its addressable markets while driving shareholder value. Recovering Commercial & Industrial (“C&I”) markets are likely to have further boosted Generac’s margins in the to-be-reported quarter.
Key Factors
During the quarter under review, Generac established a new business organization as part of its ‘Powering Our Future’ strategy. The company appointed three executives to new positions. Named Energy Technology (“ET”), the new organization will comprise all Generac’s businesses, which mainly focus on products or services related to storage and energy management products.
These consist of Generac’s acquired Pika Energy, Neurio Technologies and Enbala Power Networks as well as its existing connectivity business. The combination of these teams into one operating group will help position Generac as an emerging leader in the energy storage and management industry. It will also align business priorities and accelerate its go-to-market efforts. The ET organization will serve as the operating platform for future potential acquisitions in the energy technology industry.
The global designer of energy technology solutions had also announced plans to open a new manufacturing, assembly and distribution operation in Trenton, SC. The facility will support increased demand for home standby generators and related energy technologies. It will also serve as a distribution center to customers in the southeast part of the country. These significant developments are likely to have had a positive impact on the company’s top line in the first quarter.
For the to-be-reported quarter, the Zacks Consensus Estimate for total revenues is pegged at $736 million, which indicates an increase of 54.6% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at $1.89, which suggests a surge of 117.2%.
What Our Model Says
Our proven model predicts an earnings beat for Generac this season. 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 perfectly 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 +1.94% as the former is pegged at $1.93 and the latter at $1.89.
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 #2.
Other Stocks to Consider
Here are some other 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:
Caterpillar Inc. (CAT - Free Report) is slated to release first-quarter 2021 results on Apr 29. It has an Earnings ESP of +3.15% and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
EMCOR Group, Inc. (EME - Free Report) is scheduled to release first-quarter 2021 results on Apr 29. The company has an Earnings ESP of +10.26% and carries a Zacks Rank #2, at present.
United States Steel Corporation (X - Free Report) has an Earnings ESP of +29.67% and a Zacks Rank of 2. The company is set to report first-quarter 2021 results on Apr 29.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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