Generac Holdings Q2 Earnings Top Estimates

Generac Holdings Inc GNRC reported second-quarter FY22 sales growth of 40% year-on-year to $1.29 billion, beating the consensus of $1.27 billion.
Residential product sales grew 49% to $896 million, and Commercial & Industrial (C&I) product sales increased 22% to $309 million.
Domestic segment sales increased 42% to $1.13 billion, and the International segment sales rose 43% to $203.3 million.
Adjusted EPS of $2.99 beat the analyst consensus of $2.63.
Gross profit increased 34.5% to $456.9 million. The gross profit margin contracted by 150 basis points Y/Y to 35.4%.
Operating expenses increased by 53.2% Y/Y to $240 million. The operating margin was 16.8%, and operating income for the quarter declined 18.5% to $216.8 million. Adjusted EBITDA was $271.5 million.
The company held $467.1 million in cash and equivalents as of June 30, 2022.
Outlook: Generac maintains its FY22 net sales growth outlook of 36% - 40%.
It continues to expect an adjusted EBITDA margin of 21.5% – 22.5%.
Price Action: GNRC shares are trading lower by 6.27% at $249.94 on the last check Wednesday.

Momentum23.68

Growth99.45

Quality82.48

Value18.59

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