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What to Expect Ahead of Generac's (GNRC) Q2 Earnings Release?
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Generac Holdings Inc (GNRC - Free Report) will report second-quarter 2022 results on Aug 3.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.26 billion, indicating a year-over-year increase of 37.1%.
The Zacks Consensus Estimate for quarterly earnings is pinned at $2.65 per share, suggesting an increase of 10.9% year on year.
In the last reported quarter, Generac reported adjusted earnings of $2.09 per share, which beat the Zacks Consensus Estimate by 10%. However, the bottom line declined 12.2% year over year. Net sales increased 41% year over year and totaled $1.14 billion, beating the consensus mark by 4.9%.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 3.9%. In the past year, shares of the company have lost 32.9%, compared with the industry’s decline of 31.2%.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for the upcoming announcement.
Key Factors
Generac is likely to have benefited from continued capacity expansion efforts and a robust demand environment for home standby generators, PWRcell energy storage systems, clean energy products and C&I products globally.
Demand for home standby generators is benefiting from increasing power outages and broader electrification trends. C&I sales are likely to have gained from increasing demand in the mobile and telecom channels.
In the last reported quarter, revenues from the Residential segment soared 43% to $777 million. Revenues from the C&I segment were $279 million, up 38% from the year-ago quarter’s levels.
Disciplined operational execution and increased backlog are likely to have acted as other tailwinds.
Apart from strong momentum in the core business, synergies from the recent acquisitions are expected to have driven the second-quarter top line. In December 2021, Generac acquired ecobee Inc. Headquartered in Toronto, Canada, ecobee is a leader in sustainable smart home solutions.
Prior to that, GNRC acquired Apricity Code Corporation for an undisclosed amount. The acquisition will bolster Generac’s efforts to provide a broader energy technology portfolio. Also, it will increase the company’s speed to market for its Clean Energy and Grid Services products and solutions. Last year, the company acquired a leading designer and manufacturer of energy storage products and solutions, Off Grid Energy Ltd. The technical expertise of the Off Grid Energy team will enable Generac to bolster its product roadmap.
Ongoing cost cutting and pricing action initiates are likely to have favored the margin performance in the to-be-reported quarter.
However, uncertainty prevailing over global economic conditions, protracted supply chain and logistics troubles and increasing operating costs continue to be major concerns.
What Our Model Says
Our proven model does 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 +0.76% 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 Occidental Petroleum’s to-be-reported quarter’s earnings and revenues is pegged at $2.93 per share and $9.74 billion, respectively. Occidental Petroleum delivered an average surprise of 26.2% in the preceding four quarters. Shares of OXY have soared 126.8% in the past year.
Suncor Energy (SU - Free Report) has an Earnings ESP of +11.91% and currently flaunts a Zacks Rank #2. SU is slated to release quarterly numbers on Aug 4.
The Zacks Consensus Estimate for SU’s to-be-reported quarter’s earnings and revenues is pegged at $1.74 per share and $9.9 billion, respectively. SU surpassed earnings estimates in two of the preceding four quarters, delivering an average surprise of 3.6%. Shares of SU have gained 35.6% in the past year.
MercadoLibre, Inc (MELI - Free Report) has an Earnings ESP of +16.2% and a Zacks Rank #3 currently. MELI is slated to release quarterly numbers on Aug 3.
The Zacks Consensus Estimate for MELI’s to-be-reported quarter’s earnings and revenues is pegged at $1.68 per share and $2.47 billion, respectively. MELI surpassed earnings estimates in two of the preceding four quarters and missed in the remaining quarters. The average surprise stands at 312.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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What to Expect Ahead of Generac's (GNRC) Q2 Earnings Release?
Generac Holdings Inc (GNRC - Free Report) will report second-quarter 2022 results on Aug 3.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.26 billion, indicating a year-over-year increase of 37.1%.
The Zacks Consensus Estimate for quarterly earnings is pinned at $2.65 per share, suggesting an increase of 10.9% year on year.
In the last reported quarter, Generac reported adjusted earnings of $2.09 per share, which beat the Zacks Consensus Estimate by 10%. However, the bottom line declined 12.2% year over year. Net sales increased 41% year over year and totaled $1.14 billion, beating the consensus mark by 4.9%.
Generac Holdings Inc. Price and EPS Surprise
Generac Holdings Inc. price-eps-surprise | Generac Holdings Inc. Quote
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 3.9%. In the past year, shares of the company have lost 32.9%, compared with the industry’s decline of 31.2%.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for the upcoming announcement.
Key Factors
Generac is likely to have benefited from continued capacity expansion efforts and a robust demand environment for home standby generators, PWRcell energy storage systems, clean energy products and C&I products globally.
Demand for home standby generators is benefiting from increasing power outages and broader electrification trends. C&I sales are likely to have gained from increasing demand in the mobile and telecom channels.
In the last reported quarter, revenues from the Residential segment soared 43% to $777 million. Revenues from the C&I segment were $279 million, up 38% from the year-ago quarter’s levels.
Disciplined operational execution and increased backlog are likely to have acted as other tailwinds.
Apart from strong momentum in the core business, synergies from the recent acquisitions are expected to have driven the second-quarter top line. In December 2021, Generac acquired ecobee Inc. Headquartered in Toronto, Canada, ecobee is a leader in sustainable smart home solutions.
Prior to that, GNRC acquired Apricity Code Corporation for an undisclosed amount. The acquisition will bolster Generac’s efforts to provide a broader energy technology portfolio. Also, it will increase the company’s speed to market for its Clean Energy and Grid Services products and solutions. Last year, the company acquired a leading designer and manufacturer of energy storage products and solutions, Off Grid Energy Ltd. The technical expertise of the Off Grid Energy team will enable Generac to bolster its product roadmap.
Ongoing cost cutting and pricing action initiates are likely to have favored the margin performance in the to-be-reported quarter.
However, uncertainty prevailing over global economic conditions, protracted supply chain and logistics troubles and increasing operating costs continue to be major concerns.
What Our Model Says
Our proven model does 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 +0.76% 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:
Occidental Petroleum Corporation (OXY - Free Report) has an Earnings ESP of +1.78% and a Zacks Rank #2 currently. Occidental Petroleum is scheduled to report earnings results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Occidental Petroleum’s to-be-reported quarter’s earnings and revenues is pegged at $2.93 per share and $9.74 billion, respectively. Occidental Petroleum delivered an average surprise of 26.2% in the preceding four quarters. Shares of OXY have soared 126.8% in the past year.
Suncor Energy (SU - Free Report) has an Earnings ESP of +11.91% and currently flaunts a Zacks Rank #2. SU is slated to release quarterly numbers on Aug 4.
The Zacks Consensus Estimate for SU’s to-be-reported quarter’s earnings and revenues is pegged at $1.74 per share and $9.9 billion, respectively. SU surpassed earnings estimates in two of the preceding four quarters, delivering an average surprise of 3.6%. Shares of SU have gained 35.6% in the past year.
MercadoLibre, Inc (MELI - Free Report) has an Earnings ESP of +16.2% and a Zacks Rank #3 currently. MELI is slated to release quarterly numbers on Aug 3.
The Zacks Consensus Estimate for MELI’s to-be-reported quarter’s earnings and revenues is pegged at $1.68 per share and $2.47 billion, respectively. MELI surpassed earnings estimates in two of the preceding four quarters and missed in the remaining quarters. The average surprise stands at 312.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.