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. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins expanded across the board.
Generac Holdings booked revenue of $399.6 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $365.8 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $294.6 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 $1.21. The nine earnings estimates compiled by S&P Capital IQ averaged $0.93 per share. Non-GAAP EPS of $1.21 for Q1 were 55% higher than the prior-year quarter's $0.78 per share. GAAP EPS of $0.73 for Q1 were 66% higher than the prior-year quarter's $0.44 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 38.4%, 70 basis points better than the prior-year quarter. Operating margin was 24.2%, 400 basis points better than the prior-year quarter. Net margin was 12.7%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $318.6 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is $3.45.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 63 members out of 73 rating the stock outperform, and 10 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Generac Holdings a green thumbs-up, and three 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 $39.78.
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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. 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.