Generac (GNRC) reports Q3: everything you need to know ahead of earnings

What happened

Generac will report quarterly results Wednesday morning. Last quarter it reported revenues of $1.17 billion, up 10.6% year on year, missing analysts' revenue expectations but beating earnings per share and EBITDA estimates. This quarter, the market expects revenue to grow 19.1% year on year.

Confirmed

Global impact / market context

The expected 19.1% revenue growth would reverse last year's 5% decline, a swing that matters because faster sales can lift profit if costs stay controlled. Generac has repeatedly missed revenue estimates, so hitting this forecast would strengthen confidence in its power generation business.

Analyst inference

Peers Bloom Energy and Allegion already reported higher revenues, beating estimates. Bloom Energy's revenue grew 138% year on year and beat expectations by 14.6%, while Allegion's revenue rose 9.6% and topped estimates by 3.3%, offering a comparison for Generac's upcoming report.

Analyst inference

What to watch

1. Watch whether Generac's revenue reaches the 19.1% year-on-year growth the market expects, since the company has missed Wall Street's revenue estimates multiple times over the last two years. Confirmed
2. Watch whether analysts change their estimates before the report; they have generally reconfirmed them over the last 30 days, suggesting they expect the business to stay the course. Proposed
3. Watch how Generac shares react even if revenue beats estimates, because Bloom Energy traded down 11.7% following its results, showing strong numbers can still disappoint investors. Analyst inference

Evidence

• stockstory.org