Generac Holdings Inc. shares
GNRC,
were falling more than 3% in premarket trading Wednesday after the company, which sells generators and other backup power systems, reported mixed quarterly results and called out a softer consumer landscape. The company logged second-quarter net income of $45 million, or 70 cents a share, compared with $156 million, or $2.21 a share, in the year-prior quarter. On an adjusted basis, Generac earned $1.08 a share, down from $2.86 a share a year before, while analysts tracked by FactSet were modeling $1.16 a share. Net sales fell to $1.00 billion from $1.29 billion, while analysts had been anticipating $980 million. “As expected, overall second quarter sales declined from a strong prior year comparable period that included the significant benefit of excess backlog reduction for home standby generators,” Chief Executive Aaron Jagdfeld said in a release. He added that his “expectations for the consumer environment are now softer than previously projected” but said that “the long-term mega-trends that are driving awareness for backup power solutions are as compelling as ever.”
