News

Generac Holdings Inc GNRC will report first-quarter 2023 results on May 3.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $840.1 million, indicating a year-over-year decrease of 26.1%. The Zacks Consensus Estimate for earnings is pegged at 52 cents per share, down 75.1% year over year.

The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.9%. In the past year, shares of the company have lost 54.9% compared with the sub-industry’s decline of 66.1%.

Generac Holdings Inc. Price and EPS Surprise

Key Factors

Generac’s performance is likely to have been affected by the softness of residential products and elevated home standby field inventory levels, which unfavorably impacted orders and shipments. Also, the shipments of clean energy products were lower than anticipated in the last reported quarter.

The company’s margin is likely to have been impacted by rising expenses owing to laying the groundwork for the development of a home energy technology industry. Continued weakness in PWRcell energy storage systems is a major concern.

However, the company’s performance is likely to have been cushioned by strength in the Commercial & Industrial (C&I) products segments’ sales. The company’s international business segment is likely to gain from rising global demand for backup power and mobile products.

The C&I business segment is likely to have benefited from increased federal infrastructure spending and the ongoing improvement of international communication networks. Rising power outages and strengthening end-market activities in the home standby category are also likely to have acted as tailwinds.

What Our Model Says

Our proven model does not predict an earnings beat for Generac this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Generac has an Earnings ESP of -5.16% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Marriott International MAR has an Earnings ESP of +0.81% and currently carries a Zacks Rank of 2. MAR is set to announce quarterly figures on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MAR’s to-be-reported quarter’s earnings and revenues is pegged at $1.86 per share and $5.28 billion, respectively. Shares of MAR are down 4.9% in the past year.

Booking Holdings BKNG has an Earnings ESP of +14.56% and presently carries a Zacks Rank #2. BKNG is slated to release quarterly numbers on May 4.

The Zacks Consensus Estimate for BKNG’s to-be-reported quarter’s earnings and revenues is pegged at $10.62 per share and $3.74 billion, respectively. Shares of BKNG are up 22.5% in the past year.

Post Holdings POST has an Earnings ESP of +2.94% and currently sports a Zacks Rank #1. POST is scheduled to report quarterly earnings on May 4.

The Zacks Consensus Estimate for POST’s to-be-reported quarter’s earnings and revenues is pegged at 68 cents per share and $1.56 billion, respectively. Shares of POST are up 23.7% in the past year.

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