Engine powered products manufacturer,
Generac Holdings Inc.
) posted impressive results for the first quarter of 2013.
Generac's adjusted earnings per share in the quarter were $1.21,
increasing 26.0% year over year. Increased sales and improved
margins also helped the company beat the Zacks Consensus Estimate
of 98 cents by 23.5%.
: Increased demand from households for back up power and the
acquisition of Ottomotores increased revenue in the quarter by
35.7% to $399.6 million. Revenue surpassed the Zacks Consensus
Estimate of $360.0 million by a comfortable margin.
Revenue from Residential products increased 45.8% year over
year to $255.2 million, due to increased demand for home stand by
and portable generators as well as Generac's enhanced and
improved distribution channels.
Revenue derived from Commercial & Industrial products
increased 21.0% to $127.1 million, driven by the acquisition of
Ottomotores as well as increased sales of natural gas
: Gross margins for Generac was recorded at 38.4%, increasing 70
basis points year over year, due to a mix of cost saving
initiatives and better product prices. Adjusted EBITDA margin in
the quarter increased 149 basis points to 27.2%.
Balance Sheet/Cash Flow
: Exiting the first quarter of 2013, Generac's cash and cash
equivalents stood at $54.3 million, compared with $108.0 million
in the preceding quarter. Long-term debt was recorded at $770.7
million, against $799.0 million at the end of fourth quarter
Cash generated from operating activities was recorded at $38.3
million, compared with $38.6 million in the year-ago comparable
quarter. Capital expenditure for the quarter amounted to $4.3
million, against $2.1 million recorded in the first quarter of
: Based on the strong results in the first quarter of 2013,
management has revised upwards its guidance for the year 2013. At
the end of the previous quarter, it was expected that revenue in
2013 will grow by 10.0% over 2012, which is now increased to a
low-mid teen hike. Gross margins are expected to be flat with
respect to 2012, with operating expenses rising marginally. For
the second quarter of 2013, sales are expected to rise by 30%-35%
compared with the second quarter of 2012.
Generac currently carries a Zacks Rank #3 (Hold). Other stocks
worth a look in the industry are
Broadwind Energy, Inc.
); each carrying a Zacks Rank #2 (Buy).
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GENERAC HOLDING (GNRC): Free Stock Analysis
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