WAUKESHA, Wis. – Generac Holdings Inc. (NYSE:) reported third-quarter earnings that surpassed analyst expectations, driven by increased demand for residential products amid elevated power outage activity. The company also raised its full-year 2024 guidance.
Shares added 2% in pre-market Thursday trade.
The power equipment manufacturer posted adjusted earnings per share of $2.25, beating the analyst consensus of $1.95. Revenue for the quarter came in at $1.17 billion, slightly above the estimated $1.16 billion and up 10% YoY.
Residential product sales, a key driver of growth, jumped 28% to $723 million compared to $565 million in the same quarter last year. However, Commercial & Industrial (C&I) product sales declined 15% to $328 million.
Generac CEO Aaron Jagdfeld attributed the strong performance to “elevated power outage activity” which “drove increased shipments of our residential products.” He noted that the U.S. experienced “the highest level of power outage hours through the first nine months of the year since we began tracking outage data in 2010.”
The company raised its full-year 2024 net sales growth guidance to 5-9%, up from the previous 4-8%. It also increased its adjusted EBITDA margin forecast to 17.5-18.5%, from the earlier 17-18%.
During the quarter, Generac repurchased 690,711 shares of its common stock for approximately $102 million. The company reported strong cash flow generation, with cash flow from operations at $212 million, up from $140 million in the prior year.
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