Generac Stock

Generac Stock Plunges After Earnings Miss

Generac shares fell more than 15% in premarket trading on Friday after the company reported worse-than-expected earnings for the fourth quarter.

The company reported adjusted earnings per share of $1.73, missing the consensus estimate of $1.80. Revenue also came in below expectations, with the company reporting $978.1 million, compared to the $1.01 billion estimate.

The earnings miss was largely due to a decline in the company's residential business. Generac said that demand for its home backup generators was lower than expected in the quarter, as consumers have been cutting back on spending amid rising inflation.

The company's commercial and industrial business also underperformed in the quarter.

Generac said that it is taking steps to address the challenges facing its business, including cutting costs and raising prices.

However, the company warned that the current economic environment is likely to continue to weigh on its results in the near term.

Analysts are now downgrading their ratings on Generac stock, with many saying that the company's earnings potential is now more limited.