On August 4, Generac rose 5.06% in regular trading, trading at $211.395/share, with turnover of $75.35 million.
The rally was driven by the company's Q2 earnings report, which showed adjusted EPS of $2.91, beating the consensus estimate of $2.01 by 44.78% and representing a 76.36% year-over-year increase. Revenue came in at $1.173 billion, up 10.4% year-over-year, roughly in line with expectations. The company reaffirmed its full-year net sales growth guidance of 15%-19% year-over-year, with net margin projected at approximately 9.0% to 10.0%.
Additionally, Generac's data center business continues to gain momentum. The company previously signed a global supply agreement with a hyperscale data center operator for backup power generators, and announced a collaboration with CPower Energy to deploy distributed generation services across the PJM grid. The company noted rapidly increasing data center backlog provides visibility to significant growth ahead. UBS raised its price target to $340 from $335, maintaining a Buy rating, while the consensus target stands at approximately $291.93 with an overweight rating.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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