Generac reports record results
The recent utility shut-offs in California have generated interest in Generac Holdings products, according to CEO Aaron Jagdfeld. “Interest in our back-up power solutions is at an all-time high,” he said.
The maker of generators and designer of energy solutions also pointed to a record high in net sales. Waukesha, Wis.-based Generac’s third-quarter sales of $601.1 million were up 6.9% from $562.4 million in the same quarter last year.
Generac reported strong growth across its various product categories in the third quarter. Residential product sales increased 7.4% to $335.0 million as compared to $311.9 million last year, with core sales growth of approximately 7%.
The company is increasing its full-year 2019 guidance for revenue growth reflecting stronger end market demand for residential products, partially offset by slowing commercial & industrial activity. Generac raised its full-year net sales growth to approximately 8% to 9%, with core sales growth now expected to be approximately 7% compared to the prior year.
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The bottom line: Net income of $75.6 million was down slightly from $75.8 million in last year’s third quarter.
What the CEO said: “Our performance in 2019 demonstrates the powerful secular growth opportunities around an aging electrical grid in the United States that is more susceptible to power outages due to a changing climate, the increasing penetration of natural gas power generation globally, and the importance of reliable telecommunication networks," said Jagdfeld.
More on Generac: Read the company’s earnings release here.
The maker of generators and designer of energy solutions also pointed to a record high in net sales. Waukesha, Wis.-based Generac’s third-quarter sales of $601.1 million were up 6.9% from $562.4 million in the same quarter last year.
Generac reported strong growth across its various product categories in the third quarter. Residential product sales increased 7.4% to $335.0 million as compared to $311.9 million last year, with core sales growth of approximately 7%.
The company is increasing its full-year 2019 guidance for revenue growth reflecting stronger end market demand for residential products, partially offset by slowing commercial & industrial activity. Generac raised its full-year net sales growth to approximately 8% to 9%, with core sales growth now expected to be approximately 7% compared to the prior year.
# # #
The bottom line: Net income of $75.6 million was down slightly from $75.8 million in last year’s third quarter.
What the CEO said: “Our performance in 2019 demonstrates the powerful secular growth opportunities around an aging electrical grid in the United States that is more susceptible to power outages due to a changing climate, the increasing penetration of natural gas power generation globally, and the importance of reliable telecommunication networks," said Jagdfeld.
More on Generac: Read the company’s earnings release here.