The 10-second takeaway
For the quarter ended June 30 (Q2), Generac Holdings beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased significantly.
Margins increased across the board.
Generac Holdings tallied revenue of $346.7 million. The nine analysts polled by S&P Capital IQ wanted to see a top line of $328.4 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $239.1 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 $0.95. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.77 per share. Non-GAAP EPS of $0.95 for Q2 were 64% higher than the prior-year quarter's $0.58 per share. GAAP EPS of $0.40 for Q2 were 186% higher than the prior-year quarter's $0.14 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 37.8%, 120 basis points better than the prior-year quarter. Operating margin was 22.0%, 650 basis points better than the prior-year quarter. Net margin was 8.1%, 420 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $327.4 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $1.37 billion. The average EPS estimate is $3.47.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 70 members out of 77 rating the stock outperform, and seven members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Generac Holdings a green thumbs-up, and two 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 $41.50.
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