GNRC Earnings Prediction
The chart below shows how GNRC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GNRC sees a +1.16% change in stock price 10 days leading up to the earnings, and a +1.17% change 10 days following the report. On the earnings day itself, the stock moves by -1.10%. This data can give you a slight idea of what to expect for the next quarter's release.
GNRC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.17B
9.61%
17.57%
Gross Margin
38.18%
17.12%
8.65%
Operating Margin
14.86%
17.75%
37.47%
Net Margin
9.70%
71.38%
63.85%
EPS
1.89
94.85%
94.85%
No Data Available
GNRC Earnings Analysis
GENERAC HOLDINGS INC Corporation (GNRC.N) Earnings Conference Call
Positive
Net Sales Surge: 1. Strong Net Sales Growth: Overall net sales increased approximately 10% year-over-year to $1.2 billion, driven by a 28% rise in residential product sales due to heightened demand for home standby and portable generators.
Record Gross Margins Achieved: 2. Record Gross Margins: Gross margins reached 40.2%, the highest level since Q3 2010, attributed to a favorable sales mix and improved production efficiencies.
Dealer Network Expansion: 3. Increased Dealer Network: The residential dealer count grew to approximately 9,100, an increase of 400 dealers from the prior year, enhancing distribution capabilities in regions affected by severe weather.
Free Cash Flow Increase: 4. Significant Free Cash Flow: Free cash flow for the quarter was $184 million, up from $117 million in the prior year, reflecting higher operating earnings and reduced working capital.
2024 Sales Growth Outlook: 5. Positive Outlook for 2024: The company raised its 2024 net sales growth outlook to approximately 5% to 9%, up from the previous range of 4% to 8%, driven by increased demand for residential products.
Negative
C&I Sales Decline: 1. Decline in C&I Sales: Commercial and industrial product sales decreased 15% to $328 million compared to $385 million in the prior year quarter, primarily due to weakness in domestic shipments for telecom and rental equipment.
International Sales Decline: 2. International Sales Drop: International segment total sales decreased 20% to $167 million in the quarter, impacted by lower intercompany shipments and a decline in portable generator and C&I product sales in Europe.
Rising Operating Expenses: 3. Increased Operating Expenses: Operating expenses rose by $33 million or 12% compared to the third quarter of 2023, driven by investments in resources and higher variable expenses, despite a prior year provision for legal matters not repeating.
Rental Market Challenges: 4. Weakness in Rental Market: Shipments to rental equipment customers declined in the quarter, with the rental market expected to remain soft in the coming quarters, indicating ongoing challenges in this segment.
Decreased Sales Effectiveness: 5. Lower Close Rates: Following elevated outage activity, close rates for home standby generators have moved lower relative to the first half of 2024, indicating a potential temporary compression in sales effectiveness.
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GNRC Earning Call Sentiment
Generac Holdings Inc. (GNRC) Q3 2024 Earnings Conference Call Transcript
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GNRC.N
-1.48%Positive
The earnings call reveals strong financial performance with a 10% YoY increase in net sales and a significant rise in residential product sales. Improved gross margins and EBITDA, alongside strategic initiatives like increased production and advertising, support positive sentiment. Despite challenges in Europe and C&I sales, optimistic guidance on residential revenue and standby activations, along with a robust share repurchase plan, suggest a positive stock reaction. The Q&A section highlights management's confidence in overcoming margin drags and expanding financing options, further bolstering the positive outlook.