- Generac ( NYSE: GNRC ) shares plunged over 20% on Wednesday after the energy tech solutions firm lowered its full-year outlook and guided for third quarter sales below consensus estimates.
- Preliminary net sales for Q3 grew 15% Y/Y to ~$1.09B, but fell short of company's prior expectations and Wall Street estimates of $1.34B.
- Preliminary net income reduced from $132M, or $1.93 per share, in the year-ago quarter to ~$58M, or $0.83 per share. Adjusted EBITDA also narrowed from $209M to ~$184M.
- The company attributed the underwhelming results to lower than expected residential product sales and lower home standby generator orders.
- As a result, it revised its full-year 2022 net sales growth outlook to 22% to 24% compared to 36-40% previously, as home standby order headwinds are expected to persist during Q4 and through the first half of 2023.
- Adjusted EBITDA margin is now expected to be ~18 to 19% compared to the previous guidance of 21.5 to 22.5%.
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Generac stock continues 20% nosedive after full-year guidance cut