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Source: Lissandra Melo / Shutterstock.comGenerac (NYSE:GNRC) stock is falling on Wednesday after the energy technology manufacturing company lowered its guidance for 2022.
Starting off that guidance cut is the company now expecting a net sales growth range of 22% to 24%. That’s down from its previous guidance, which had it expecting net sales growth between 36% to 40% for the full year of 2022.
To go along with that, Generac says it now expects net income margin for 2022 to range from 9% to 10%. The company’s prior guidance had it expecting net income margin to range from 13% to 14%.
The final guidance update from the company adjusted EBITDA margin. This is expected to come in between 18% and 19%. Yet again, that’s lower than the company’s prior guidance of 21.5% to 22.5%.
Preliminary Q3 Results Aren’t Helping GNRC Stock
The company’s preliminary results for the third quarter of 2022 include adjusted earnings per share of $1.75. That’s nowhere close to the $3.21 per share that Wall Street is expecting. It’s also a drop from the $2.35 per share reported at the same time last year.
Also disappointing is Generac’s revenue of $1.09 billion. That’s another miss next to analysts’ estimate of $1.33 billion. Even if it represents a 15% increase year-over-year compared to $943 million.
All of this news has heavy trading dragging GNRC stock down as traders sell shares. As of this writing, more than 4 million shares had changed hands. That’s well above its daily average trading volume of about 1.3 million shares.
GNRC stock is down 20.1% as of Wednesday morning.
Investors looking for more stock market news will want to stick around!
We’ve got all of the latest stock market news traders need to know about for Wednesday! A few examples include what has shares of airline stocks, Xpeng (NASDAQ:XPEV), and Zymeworks (NYSE:ZYME) stock on the move today. You can catch up on all of that news at the following links!
More Wednesday Stock Market News
- Why Are Airline Stocks UAL, DAL, AAL Up Today?
- Dear XPEV Stock Fans, Mark Your Calendars for Oct. 24
- Why Is Zymeworks (ZYME) Stock Up Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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