The 10-second takeaway
For the quarter ended March 31 (Q1), Generac Holdings beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, net margins improved.
Generac Holdings reported revenue of $294.6 million. The eight analysts polled by S&P Capital IQ expected sales of $250.7 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $124.0 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 five earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. GAAP EPS of $0.44 for Q1 were much higher than the prior-year quarter's $0.07 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 37.7%, 40 basis points worse than the prior-year quarter. Operating margin was 20.2%, 1,120 basis points better than the prior-year quarter. Net margin was 10.2%, 630 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $241.9 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $951.5 million. The average EPS estimate is $2.36.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 36 members out of 40 rating the stock outperform, and four members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Generac Holdings a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Generac Holdings is hold, with an average price target of $27.67.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.