Examining the Future: Generac Hldgs's Earnings Outlook

Generac Hldgs GNRC is preparing to release its quarterly earnings on Thursday, 2024-10-31. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Generac Hldgs to report an earnings per share (EPS) of $1.94.

The announcement from Generac Hldgs is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.14, leading to a 6.54% drop in the share price on the subsequent day.

Here's a look at Generac Hldgs's past performance and the resulting price change:

Analysts' Perspectives on Generac Hldgs

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Generac Hldgs.

The consensus rating for Generac Hldgs is Buy, derived from 14 analyst ratings. An average one-year price target of $178.14 implies a potential 7.57% upside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of Acuity Brands, Regal Rexnord and nVent Electric, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Acuity Brands, with an average 1-year price target of $317.0, indicating a potential 91.43% upside.
• The consensus among analysts is an Buy trajectory for Regal Rexnord, with an average 1-year price target of $196.33, indicating a potential 18.56% upside.
• The consensus among analysts is an Outperform trajectory for nVent Electric, with an average 1-year price target of $83.0, indicating a potential 49.88% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Acuity Brands, Regal Rexnord and nVent Electric, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Generac Hldgs ranks at the bottom for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

All You Need to Know About Generac Hldgs

Generac designs and manufactures power generation equipment serving residential, commercial, and industrial markets. It offers standby generators, portable generators, lighting, outdoor power equipment, and a suite of clean energy products. Sales generated in the United States account for the majority of total sales.

Generac Hldgs: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Generac Hldgs's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -0.22% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Generac Hldgs's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.92% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Generac Hldgs's ROE excels beyond industry benchmarks, reaching 2.5%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.15%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.72.

To track all earnings releases for Generac Hldgs visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.