Generac to Report Q3 Earnings: What Should Investors Expect?

Generac Holdings Inc. GNRC will report third-quarter 2025 results on Oct. 29, before market open. The Zacks Consensus Estimate for revenues is pinned at $1.2 billion, up 2.6% from the prior-year reported number. GNRC expects net sales growth slightly ahead of the prior-year sales of $1.17 billion. The consensus estimate for earnings is pinned at $2.25 per share, flat year over year. The estimate has gone down 2 cents per share in the past seven days.GNRC’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 19.24%. Image Source: Zacks Investment ResearchIn the past year, shares of the company have gained 15.8% compared with the Zacks Manufacturing-General Industrial industry’s growth of 5.9%.Factors at Play Ahead of GNRC’s Q3 ResultsStrong demand for portable generators and higher shipments of residential-energy technology products (ecobee and energy storage systems) are likely to have driven the Residential segment’s performance. On the last earnings call, GNRC noted that connected ecobee homes grew to more than 4.5 million, driven by rising energy services and subscription attach rates. Energy storage shipments surged as work accelerated on the major Puerto Rico Department of Energy project.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. Generac began taking orders for the next-gen PWRcell 2, with first shipments starting in July 2025. It unveiled Generac PWRmicro, an installer-friendly microinverter, in September. This power backup solution, coupled with GNRC’s PWRcell 2, ecobee Smart Thermostat and home standby generators, boosts its smart ecosystem of energy products.However, home standby generator sales were flat in the second quarter, reflecting subdued residential installation activity and weather normalization. Management tweaked 2025 guidance for Residential Product sales owing to revised pricing assumptions in the home standby generator category, due to revised tariff levels. Residential Product sales are now expected to be slightly lower than the previous guidance of a low single-digit range. This is likely to have dragged down revenues in the third quarter. The Zacks Consensus Estimate for the third quarter of Residential products' revenues is pegged at $714 million. Improving Commercial & Industrial (“C&I”) sales is likely to have acted as another tailwind. C&I sales were up 5% in the second quarter, fueled by domestic industrial distributors and a resurgence in telecom spending. GNRC expects the combination of recent order trends across multiple C&I categories and the favorable forex movement to drive continued year-over-year sales growth in the second half of 2025. The consensus estimate for C&I products' revenues is pinned at $353 million.Generac Holdings Inc. Price and EPS Surprise Generac Holdings Inc. price-eps-surprise | Generac Holdings Inc. QuoteGenerac’s entry into large megawatt backup generator solutions designed for hyperscale and AI-driven data center power requirements is another big development. Management expects incremental benefit from the third quarter from the initial megawatt generator shipments. In the second quarter, driven by a strong initial reception, the company developed a significant global pipeline of opportunities and built a global backlog of more than $150 million. The company expects EBITDA margins to be up 150-200 bps sequentially, driven by seasonally higher sales volumes.However, GNRC noted, shipments to national and independent rental equipment customers were “soft” in the second quarter, with weakness expected to persist through the latter half of 2025.Volatile macroeconomic conditions, including tariff troubles, stiff competition and increasing operating costs, remain concerning for Generac.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 -6.79% and a Zacks Rank #4 (Sell) 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.Western Digital Corporation WDC currently has an Earnings ESP of +1.89% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. WDC is scheduled to report quarterly earnings on Oct. 30. The Zacks Consensus Estimate for WDC’s to-be-reported quarter’s earnings and revenues is pegged at $1.59 per share and $2.72 billion, respectively. Shares of WDC have gained 85.7% in the past year.Amazon.com, Inc. AMZN has an Earnings ESP of +12.61% and a Zacks Rank #2 at present. AMZN is scheduled to report quarterly figures on Oct. 30. The Zacks Consensus Estimate for AMZN’s to-be-reported quarter’s earnings and revenues is pegged at $1.57 per share and $177.88 billion, respectively. Shares of AMZN have gained 19% in the past year.Seagate Technology Holdings plc STX has an Earnings ESP of +2.54% and a Zacks Rank #2 at present. It is scheduled to report quarterly figures on Oct. 28. The Zacks Consensus Estimate for STX’s to-be-reported quarter’s earnings and revenues is pegged at $2.36 per share and $2.53 billion, respectively. Shares of STX have gained 131.1% in the past year.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>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 Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology Holdings PLC (STX): Free Stock Analysis Report Generac Holdings Inc. (GNRC): 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