July 30 (Reuters) - Generac Holdings ( GNRC ) reported
better-than-expected second-quarter profit and revenue on
Wednesday, as frequent power outages lifted sales of its backup
generators, batteries and solar equipment.
Demand for the company's home standby generators has risen
in tandem with power outages caused by winter storms and
hurricanes last year.
CEO Aaron Jagdfeld said there was a "dramatic" increase in
the sales of Generac's ( GNRC ) residential segment after shipments to
Puerto Rico rose following widespread blackouts.
Sales in the residential segment, its biggest in terms of
sales, were up 6.6% from a year ago.
Jagdfeld also said demand from the company's industrial and
telecom customers remains strong and that there was a "strong
initial reception" to its entry into the power-hungry data
centre market during the quarter.
The Waukesha, Wisconsin-based company's commercial and
industrial (C&I) business segment posted a 5.2% rise in
quarterly sales from a year ago.
Its total net sales for the quarter ended June 30 was $1.06
billion, beating estimates of $1.03 billion, according to data
compiled by LSEG.
Gross profit margin in the second quarter was 39.3%,
compared with 37.6% a year ago.
It expects full-year net income margin to range between 7.5%
and 8.5%, compared with previous guidance range of 6.5% to 8.5%.
But Generac ( GNRC ) narrowed its annual net sales growth forecast to
between 2% and 5%, from its prior guidance of flat to 7%, citing
lower than anticipated price increases in the second half of the
year due to tariffs.
Adjusted quarterly net income per share came in at $1.65,
above analysts' expectations of $1.32.