Generac Holdings ( NYSE: GNRC ) plunged 25% on Wednesday after the maker of backup generators slashed its full-year outlook and Q3 revenue guidance.
The company estimated that net sales for Q3 grew 15% from a year earlier to about $1.09 billion, lower than its prior forecast and the Wall Street consensus estimate of $1.34 billion.
Generac also lowered its guidance for Q3 net income to $58 million or $0.83 a share, which would be a 56% drop from $132 million, or $1.93 per share, a year earlier. The company estimated Q3 EBITDA will drop to about $184 million from $230 million for the comparable periods.
The company attributed the results to less-than-expected residential product sales and lower home standby generator orders.
Generac cut its full-year 2022 net sales growth estimate to a range of 22%-24% from 36%-40% previously on diminished demand for standby generators through the first half of next year.
The company estimated its adjusted EBITDA margin will be about 18%-19%, down from prior guidance of 21.5% to 22.5%.
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Why did Generact plunge 25% today? Generator maker warns on earnings