Generac Holdings Inc
GNRC
and Mean Green will be setting up a 100,000-square-foot facility in Hamilton, OH. The facility is aimed to tap the growing demand for electric-powered, zero-turn mowers.
Generac acquired Mean Green in September 2020 to expand its global footprint in the commercial turf care category. The new facility will focus on the production of Mean Green’s ride-on and stand-on electric mowers, along with a broad range of accessories.
The new facility supports Generac’s focus on heavy-duty, electric-powered equipment and taps the lawn and landscape market.
Generac Holdings Inc. Price and Consensus
Generac Holdings Inc. price-consensus-chart
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Generac Holdings Inc. Quote
Generac has started production in the new facility and added more than 30 jobs. The company plans to add more than a dozen team members by the end of 2022. It will produce a wide array of Mean Green items, like the – new NEMESIS zero-turn mower, which has the power of a 28 HP gas mower and can cut up to five acres on a single charge.
Per a report from
Fortune Business Insights
, the global lawn & garden equipment market is projected to grow from $31.52 billion in 2021 to $50.85 billion in 2028, registering a CAGR of 7.1%. The industry is likely to benefit from smart gardening techniques like electric-powered land mowers, trimmers, chainsaws etc. and the adoption of gardening as a hobby, added the report. The new facility will aid Generac in capturing opportunities in this market.
Generac is a leading manufacturer of power generation equipment, energy storage systems and other power products, including portable, residential, commercial and industrial generators.
For 2022, Generac expects revenue growth between 22% and 24% compared with the previous guidance of 36-40%. The net income margin (before deducting for non-controlling interests) is expected to be 9-10%.
The company
reported
third-quarter 2022 adjusted earnings of $1.75 per share, which beat the Zacks Consensus Estimate by 8%. However, the bottom line decreased 25.5% year over year.
Net sales increased 15% year over year and came in at $1.09 billion but missed the consensus mark by 0.1%. The robust demand for Commercial & Industrial products boosted Generac’s third-quarter performance.
In the third quarter, the shipments of clean energy products were highly impacted by a leading customer who stopped its operations and filed for bankruptcy protection.
At present, GNRC carries a Zacks Rank #5 (Strong Sell). The stock has lost 71.9% in the past year compared with the
sub-industry’s
decline of 77.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are
Arista Networks
ANET
,
Plexus
PLXS
and
Super Micro Computer
SMCI
, each presently sporting a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, up 8.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 0.9% in the past year.
The Zacks Consensus Estimate for Plexus 2023 earnings is pegged at $5.98 per share, rising 8.9% in the past 60 days.
Plexus’ earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 17.5%. Shares of PLXS have gained 14.5% in the past year.
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.58 per share, rising 27.7% in the past 60 days.
Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 9.4%. Shares of SMCI have soared 112.7% in the past year.
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