Generac raises margin forecast after Q2 profit beat
Shares of power equipment maker Generac GNRC.N rose 6.9% to $209 in premarket trading.
The company raised its FY net income margin to 9% to 10%, compared with its prior forecast of 8% to 9%, while maintaining its FY net sales growth outlook.
GNRC posted Q2 adjusted profit of $174 million, or $2.91 per share, above analysts' estimates of $115.9 million, or $2.01 per share, according to data compiled by LSEG.
The company reported 29% year-over-year growth in commercial and industrial segment revenue of $621.26 million, driven by strong demand for power from data centers.
CEO Aaron Jagdfeld said the company plans to increase production of large megawatt backup generators.
Generac reported Q2 net sales of $1.17 billion, slightly below estimates of $1.18 billion.
Of 22 brokerages covering the stock, 15 rate it “buy” or higher and seven rate it “hold”; the median price target is $285.
As of the previous close, the stock had risen , compared with an increase in the S&P 500.
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