Generac to Report Q2 Earnings: What Should Investors Expect?

Generac Holdings Inc. GNRC will report second-quarter 2025 results on July 30, before market open. The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.02 billion, up 2.6% from the prior-year reported number. GNRC expects second-quarter net sales growth in the low single-digit range. The consensus estimate for earnings is pinned at $1.33 per share, down 1.5% year over year. The estimate has moved down 2 cents in the past seven days.Image Source: Zacks Investment ResearchGNRC beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 15.45%. In the past year, shares of the company have gained 1% compared with the Zacks Manufacturing-General Industrial industry’s growth of 6.9%.Factors Influencing GNRC’s Q2 PerformanceStrength in the Residential segment, particularly home standby generators, is likely to have acted as a key catalyst. In the first quarter of 2025, Residential product sales surged 15% year over year, reaching $494 million, fueled by increased power outages and a growing demand for reliable backup power solutions. In addition to demand for home standby generators, the adoption of residential-energy technology products (ecobee and Energy Storage systems) is likely to have driven top-line momentum in the to be reported quarter. New product launches (including PWRcell 2 MAX and our next-generation home standby generators), along with significant investments in boosting manufacturing capacity, remain other catalysts. Margin performance is likely to have been buoyed by a favorable sales mix (due to solid home standby shipments), enhanced production efficiencies and reduced input costs. Softness in C&I sales remains concerning. C&I’s first-quarter revenues totaled $337 million, down 5% year over year. Increases in the domestic industrial, distributor and telecom channels were offset by weakness in other C&I end markets. Further, management expects C&I sales to be flat year over year in the second quarter. Generac also expects industrial distributor sales to remain softer in 2025, due to a lower starting backlog entering the year. Generac Holdings Inc. Price and EPS Surprise Generac Holdings Inc. price-eps-surprise | Generac Holdings Inc. QuoteVolatile macroeconomic conditions, including tariff troubles, stiff competition and increasing operating costs (mainly due to higher marketing spending), remain concerning for Generac. For the second quarter of 2025, GNRC expects Residential product sales to experience modest year-over-year growth. The Zacks Consensus Estimate for Residential products' revenues is pegged at $557 million. The consensus estimate for C&I products' revenues is pinned at $343 million.What Does Our Model Unveil for GNRC?Our proven model does not predict an earnings beat for Generac this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is not the case here.Generac has an Earnings ESP of -0.19% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks With the Favorable CombinationHere are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.Meta Platforms, Inc. META currently has an Earnings ESP of +2.91% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. META is scheduled to report quarterly earnings on July 30. The Zacks Consensus Estimate for META’s to-be-reported quarter’s earnings and revenues is pegged at $5.83 per share and $44.84 billion, respectively. Shares of META have gained 5.3% in the past year.Amazon.com, Inc. AMZN has an Earnings ESP of +7.37% and a Zacks Rank #1 at present. AMZN is scheduled to report quarterly figures on July 31. The Zacks Consensus Estimate for AMZN’s to-be-reported quarter’s earnings and revenues is pegged at $1.33 per share and $162.28 billion, respectively. Shares of AMZN have declined 2.4% in the past year.Sprouts Farmers Market, Inc. SFM currently has an Earnings ESP of +0.27% and a Zacks Rank #2. SFM is scheduled to report quarterly earnings on July 30. The Zacks Consensus Estimate for Sprouts Farmers Market’s to-be-reported quarter’s earnings and revenues is pegged at $1.23 per share and $2.17 billion, respectively. Shares of SFM have gained 3.9% in the past year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Generac Holdings Inc. (GNRC): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks