Generac Holdings (NYSE:GNRC) was the top performing stock in the S&P 500 index Wednesday after it reported third quarter results that topped estimates, while maintaining its full year outlook. Wall Street expectations were low heading into the print.
Generac reported third quarter EPS of $1.64, beating the average analyst estimate by $0.09. The company reported sales of $1.07 billion, topping the consensus estimate of $1.04 billion.
The generator maker maintained its overall full-year 2023 net sales guidance for a decline of approximately -10 to -12% as compared to the prior year, which includes approximately 2% of net favorable impact from acquisitions and foreign currency. The company now expects net income margin to be approximately 5.0 to 6.0% for the full-year 2023 compared to the prior guidance range of 6.0 to 7.0%.
Commenting on the quarter, analysts at KeyBanc said, “GNRC modestly lowered its net income margin outlook to 5-6% (from 6-7%) likely to reflect some incremental below-the-line headwinds. While we get the sense today's session could hinge on commentary around HSB channel dynamics (de-stocking/underlying trends), we feel shares will trade higher [near-term] given 3Q results ahead of estimates and the mostly unchanged outlook against the recently lower bar.”
Shares of climbed 14.7% after its results were published. Despite the surge, shares of Generac were still lower by about 5% over a 30 day period.