Generac Holdlings, a designer and manufacturer of power generation equipment, reported Q4 results that beat the Street view on both earnings per share and total revenues as the company guided 2016 sales above estimates. The company reported Q4 adjusted net income of $65.3 million, or $0.97 per share, as compared to $68.4 million, or $0.98 per share, in Q4 and exceeding analyst estimates of $0.89. On a GAAP basis the company reported net income of$9.2 million, or $0.14 per share, as compared to net income of $49.4 million, or $0.70 per share, for the same period of 2014.
Total revenues of $357.8 million were down from $404 million in Q4 2014 but topped analyst projections of $346.6 million. The company expects 2016 net sales increase between 10 to 12% from $1.32 billion in 2015. The guidance implies a range of $1.45 billion to $1.47 billion, beating the Street estimate of $1.35 billion. Adjusted EBITDA margins are expected to be approximately 20% for the full year 2016, and free cash flow generation is expected to be strong, with the conversion of adjusted net income anticipated to be over 90%, the company said. Shares of GNRC are at $27.91 within a 52-week range of $26.29 – $50.62.
The stock decreased 1.38% or $0.39 on February 12, hitting $27.89. Generac Holdings Inc. (NYSE:GNRC) has declined 22.58% since July 10, 2015 and is downtrending. It has underperformed by 12.38% the S&P500.
Generac Holdings Inc. designs, manufactures, and markets power generation equipment and other engine powered products for the residential, light commercial, industrial, oil and gas, and construction markets in the United States, Canada, and internationally. It offers engines, alternators, transfer switches, and other components fueled by natural gas, liquid propane, gasoline, diesel, and bi-fuel. The company provides residential automatic standby generators ranging in output from 6kW to 60kW; air-cooled engine residential standby generators ranging from 6kW to 20kW; and liquid-cooled engine generators with outputs ranging from 22kW to 60kW, as well as industrial diesel generators ranging in sizes up to 3,250kW.
It also offers various portable generators ranging in size from 800W to 17,500W; engine driven power washers; and cellular-based remote monitoring system for home standby generators. In addition, the company provides light towers, mobile generators, and flameless heaters; light-commercial standby generators ranging from 22kW to 150kW and related transfer switches providing three-phase power small and mid-sized businesses; and industrial generators ranging in output from 10kW up to 3,250kW, which are primarily used as emergency backup for large healthcare, telecom, datacom, commercial office, municipal, and manufacturing customers. Further, the company sells aftermarket service parts to dealers, and proprietary engines to third-party original equipment manufacturers. The company distributes its products through various channels, including independent residential dealers, industrial distributors and dealers, national and regional retailers, e-commerce merchants, electrical and HVAC wholesalers, catalogs, equipment rental companies, and equipment dealers, as well as directly to end users under the Generac, Magnum, Ottomotores, Tower Light, Powermate, Dewalt, MACTM, and Honeywell brands. The company was founded in 1959 and is headquartered in Waukesha, Wisconsin.
