Generac Holdings (NYSE: GNRC ) reported earnings on Aug. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Generac Holdings beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Gross margins contracted, operating margins improved, and net margins dropped.
Generac Holdings reported revenue of $239.1 million. The eight analysts polled by S&P Capital IQ predicted net sales of $229.6 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $161.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.58. The nine earnings estimates compiled by S&P Capital IQ forecast $0.53 per share. GAAP EPS of $0.14 for Q2 were 39% lower than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.6%, 80 basis points worse than the prior-year quarter. Operating margin was 15.5%, 200 basis points better than the prior-year quarter. Net margin was 3.9%, 560 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $235.5 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $986.6 million. The average EPS estimate is $2.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 45 members out of 50 rating the stock outperform, and five members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Generac Holdings a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Generac Holdings is hold, with an average price target of $26.50.
More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013
." I invite you to take a copy, free for a limited time. Just click here
to access the report and find out the name of this under-the-radar company.