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Generac (GNRC) Sees 3Q Above Consensus, Raises FY View

 October 01, 2012 06:50 AM

(By Balachander) Generac Holdings Inc. (NYSE:GNRC) increased its forecast for the full year, citing higher demand for home standby and portable generators.

The maker of engine powered products also expects earnings and sales for the third quarter above market expectations.

Generac forecasts third-quarter adjusted earnings per share (EPS) in the range of 72 cents and 77 cents, on sales between $295.0 million and $300.0 million.

Wall Street analysts, on average, expect GNRC to earn 46 cents per share on sales of $237 million for the three months ended September.

The company said recent major power outage events along with expanded marketing and sales initiatives to increase home standby penetration have boosted demand for its generators.

For 2012, Generac now expects adjusted EPS of $2.65 to $2.70 on sales growth in the low-30 percent range versus increase in the low-20 percent range projected earlier. Analysts' expect EPS of $2.39 on sales growth of 24.40 percent.

Generac expects to release its third-quarter results on Oct. 31.

Shares closed at $22.89 on Friday.  


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