The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Generac Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins expanded, net margins dropped.
Generac Holdings reported revenue of $300.6 million. The eight analysts polled by S&P Capital IQ expected net sales of $297.7 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $239.3 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 $0.78. The nine earnings estimates compiled by S&P Capital IQ averaged $0.75 per share. GAAP EPS of $0.37 for Q3 were 33% lower than the prior-year quarter's $0.55 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 38.5%, 150 basis points better than the prior-year quarter. Operating margin was 19.7%, 120 basis points better than the prior-year quarter. Net margin was 8.5%, 710 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $279.2 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $1.15 billion. The average EPS estimate is $3.05.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 50 members out of 56 rating the stock outperform, and six members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give Generac Holdings a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Generac Holdings is outperform, with an average price target of $26.50.
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