For a while, electric generator maker Generac (NYSE:GNRC) was just chugging along. Today, however, a new spark came through the system and sent Generac up substantially in Tuesday afternoon trading.
Generac has its share of problems. Elevated inventory levels kicked in about the time that sales started going soft. Generac’s CEO, Aaron Jagdfeld, noted that sales will likely be soft for the entire first half of 2023. Nevertheless, Jagdfeld revealed that the second half of 2023 would likely be much better for Generac sales thanks to the continued fragile nature of the United States power grid.
Generac’s fourth-quarter adjusted earnings produced sound results, if only just. The company posted $1.78 per share in earnings on $1.1 billion in revenue. Wall Street consensus, meanwhile, looked for $1.75 per share in earnings on $1.1 billion in revenue. Looking forward, Generac expects $4.2 billion in total revenue with $735 million in total earnings before interest, taxes, depreciation, and amortization. Wall Street’s projections look for that same $4.2 billion but just $720 million in earnings.
Overall, analyst consensus calls Generac stock a Moderate Buy with 0.01% upside potential thanks to its average price target of $134.56 per share.
