Why Generac Stock Is Plunging 20% Today
Leading home generator supplier Generac Holdings (NYSE: GNRC) warned investors about its upcoming third-quarter results today, and the stock plunged in early trading. As of 11 a.m. ET, Generac shares were down 21.9%. That pushed the stock down more than 75% from its highs just one year ago.
The leading provider of home backup generators said its revenue grew 15% compared to last year to more than $1 billion in the third quarter. However, that was shy of the company's own expectations. Net income was also hit with a charge of $18 million due to a customer in the clean energy sector ceasing operations and filing for bankruptcy. But the company's more meaningful issue is its residential customer sales.
Generac president and CEO Aaron Jagdfeld said shipments of its commercial and industrial products were in line with expectations. But while demand was still on the rise for its residential home standby generators, it didn't keep up with production, and inventories spiked. That mismatch of supply and demand came despite elevated power outages, including from Hurricane Ian.
Source Fool.com
