What to Expect Ahead of Generac's (GNRC) Q1 Earnings Release?
Generac Holdings Inc GNRC will report first-quarter 2022 results on May 4.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.08 billion, indicating a year-over-year increase of 34.2%.
The Zacks Consensus Estimate for quarterly earnings is pinned at $1.90 per share, suggesting a decline of 20.2% year on year.
In the last reported quarter, Generac reported non-GAAP adjusted earnings of $2.51 per share, up 18.4% year over year and beating the Zacks Consensus Estimate of $2.38 per share. Net sales increased 40% year over year and came in at $1.07 billion and beat the consensus mark by 4.5%.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 7.7%. In the past year, shares of the company have lost 32.6% in line with the industry’s decline.
Generac Holdings Inc. Price and EPS Surprise
Generac Holdings Inc. price-eps-surprise | Generac Holdings Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Key Factors
Synergies from the recent acquisitions are expected to have driven the first-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.
A robust demand environment and disciplined operational execution with an increased backlog are likely to have acted as other tailwinds.
Continued momentum in demand for Residential and C&I products augurs well. In the last reported quarter, revenues from Residential soared 42% to $706 million. Revenues from C&I were $284 million, up 43% from the year-ago quarter’s levels
Generac continues to witness strong demand for PWRcell energy storage systems and the Energy Technology solutions portfolio.
Demand for home standby generators is benefiting from increasing power outages and broader electrification trends. People spending more time at home due to pandemic-induced work from home/ hybrid work setup is also driving demand for home standby generators. The company fortified its position in the energy market by offering home standby generators with Smart Grid Ready technology. The move enables its customers to sell power back to the grid and offset their energy expenses. The Smart Grid Ready capabilities are being offered through the Generac’s Enbala Concerto platform.
However, pandemic-induced worldwide supply chain and logistics troubles and increasing operating costs continue to be major concerns.
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.
Generac has an Earnings ESP of -3.38% and a Zacks Rank #4 (Sell). 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:
Camtek CAMT has an Earnings ESP of +1.73% and currently has a Zacks Rank #2. Camtek is scheduled to report earnings results on May 12. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Camtek’s to-be-reported quarter’s earnings and revenues is pegged at 43 cents per share and $76.7 million, respectively. Camtek surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 10%. Shares of CAMT have declined 11.7% in the past year.
Silicon Motion Technology SIMO has an Earnings ESP of +5.03% and currently carries a Zacks Rank of 2. Silicon Motion is set to announce quarterly figures on May 4.
The Zacks Consensus Estimate for Silicon Motion’s to-be-reported quarter’s earnings and revenues is pegged at earnings of $1.55 per share and $236.3 million, respectively. Silicon Motion surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 10.4%. Shares of SIMO have lost 8.5% in the past year.
Sony Corporation SONY has an Earnings ESP of +12.96% and currently carries a Zacks Rank #3. Sony is slated to release quarterly numbers on May 10.
The Zacks Consensus Estimate for Sony’s to-be-reported quarter’s earnings and revenues is pegged at 82 cents per share and $20.82 billion, respectively. SONY surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 51.4%. Shares of SONY have lost 13.4% in the past year.
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