Power generation products company Generac (NYSE:GNRC) will be announcing earnings results tomorrow before market hours. Here's what investors should know.
Generac met analysts' revenue expectations last quarter, reporting revenues of $889.3 million, flat year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Is Generac a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Generac's revenue to be flat year on year at $1 billion, improving from the 22.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.20 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Generac has missed Wall Street's revenue estimates four times over the last two years.
Looking at Generac's peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Badger Meter delivered year-on-year revenue growth of 23.2%, beating analysts' expectations by 6.5%, and Whirlpool reported a revenue decline of 16.8%, in line with consensus estimates. Badger Meter traded up 3.7% following the results while Whirlpool was also up 2.9%.
Read our full analysis of Badger Meter's results here and Whirlpool's results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 10.2% on average over the last month. Generac is up 16.4% during the same time and is heading into earnings with an average analyst price target of $147 (compared to the current share price of $155).
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