Power generation products company Generac (NYSE: GNRC) will be reporting earnings this Wednesday before market hours. Here’s what investors should know.
Generac missed analysts’ revenue expectations by 6.6% last quarter, reporting revenues of $1.11 billion, down 5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Is Generac a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Generac’s revenue to decline 6.1% year on year to $1.16 billion, a reversal from the 16.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.77 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Generac has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Generac’s peers in the renewable energy segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Bloom Energy delivered year-on-year revenue growth of 35.9%, beating analysts’ expectations by 18.7%, and American Superconductor reported revenues up 21.4%, topping estimates by 8%. Bloom Energy traded up 3.7% following the results while American Superconductor was down 6%.
Read our full analysis of Bloom Energy’s results here and American Superconductor’s results here.
There has been positive sentiment among investors in the renewable energy segment, with share prices up 8.2% on average over the last month. Generac is up 18.9% during the same time and is heading into earnings with an average analyst price target of $202.94 (compared to the current share price of $185.78).
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