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What: Shares of generator-maker Generac (NYSE:GNRC) were looking brighter today, gaining as much as 13% after coasting past first-quarter estimates.
So what: One of the market's favorite stocks in the aftermath of Hurricane Sandy, Generac turned in an encore performance with its second strong quarter in a row. Adjusted earnings per share came in at $1.21, well ahead of the analyst consensus at $0.96, and nearly triple the $0.44 it brought in a year ago. CEO Aaron Jagdfeld said that chronic underinvestment in the electric grid as well as an aging, electricity-dependent population, and severe weather, continue to favor the company going forward. Generac also announced plans to disburse a special $5.00 cash dividend by the end of June, though that is contingent on a new debt facility.
Now what: CEO Jagdfeld hit the nail right on the head with his synopsis of the generator market. An aging and neglected electrical grid, and the increased likelihood of Sandy-like storms make Generac look like a solid bet. The stock has nearly doubled since September, and I wouldn't be surprised to see it move higher.
Keep an eye on Generac by adding the company to your Watchlist here.
Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns shares of Generac Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.