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Investing.com -- Generac Holdings Inc. reported fourth-quarter earnings that surpassed analyst expectations, driving its shares up 5% in early trading on Wednesday.
The power generation equipment manufacturer posted adjusted earnings per share of $2.80 for the quarter, beating the analyst consensus of $2.52. Revenue came in at $1.23 billion, slightly below the estimated $1.25 billion but up 16% YoY.
Generac’s residential product sales surged 28% to $743 million compared to the same period last year, driven by strong demand for home standby and portable generators following elevated power outage activity in the second half of 2024.
"Our fourth quarter results highlight our ability to rapidly increase production and execute on the strong demand for home standby and portable generators resulting from elevated outage activity in the second half of the year," said Aaron Jagdfeld, President and CEO of Generac.
The company’s gross profit margin improved to 40.6% from 36.5% in the prior-year quarter, primarily due to favorable sales mix and lower input costs.
Looking ahead, Generac initiated its full-year 2025 guidance, projecting net sales growth of 3% to 7% compared to 2024. The company expects residential product sales to grow in the mid-to-high single digit range, while commercial and industrial product sales are anticipated to remain flat.