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Generac Holdings Inc. (GNRC), headquartered in Waukesha, Wisconsin, designs, manufactures, and distributes various energy technology products and solution. With a market cap of $9.6 billion, the company offers generators to serve the residential, commercial, industrial, and telecommunications markets. The backup power giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Feb. 12.
Ahead of the event, analysts expect GNRC to report a profit of $2.47 per share on a diluted basis, up 19.3% from $2.07 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect GNRC to report EPS of $6.91, up 28% from $5.40 in fiscal 2023. Its EPS is expected to rise 19.4% year over year to $8.25 in fiscal 2025.
GNRC stock has outperformed the S&P 500’s ($SPX) 25% gains over the past 52 weeks, with shares up 40.4% during this period. Similarly, it outperformed the Industrial Select Sector SPDR Fund’s (XLI) 25% gains over the same time frame.
GNRC's exceptional performance is due to the increased demand for home standby and portable generators caused by power outages. The company has invested in expanding its production capabilities and dealer network to meet this demand, with a focus on the growing residential market. Additionally, their ecobee brand has launched new, budget-friendly smart thermostat and security solutions, catering to consumer needs. GNRC's investments in clean energy solutions and battery systems further position them for growth, especially as consumers look to reduce reliance on the grid. The recent acquisitions of PowerPlay Battery Energy Storage Systems and Ageto are expected to enhance their presence in the commercial energy storage market.
On Oct. 31, GNRC shares closed up marginally after reporting its Q3 results. Its adjusted EPS of $2.25 surpassed Wall Street expectations of $1.98. The company’s revenue was $1.17 billion, topping Wall Street forecasts of $1.16 billion.
Analysts’ consensus opinion on GNRC stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 25 analysts covering the stock, 12 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” nine give a “Hold,” one advocates a “Moderate Sell,” and two recommend a “Strong Sell.” GNRC’s average analyst price target is $179.09, indicating a potential upside of 9.2% from the current levels.
