Stock Monitor: Ocean Power Technologies Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 21, 2018 / Active-Investors.com has just released a free earnings report on Generac Holdings Inc. (NYSE: GNRC) ("Generac"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GNRC. The Company reported its fourth quarter fiscal 2017 operating and financial results on February 13, 2018. The generator maker delivered record operating and free cash flow for the reported quarter. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Generac Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
During Q4 2017, Generac's net sales increased 16.9% to $488.0 million, including a contribution from the Motortech acquisition of $9.6 million, compared to net sales of $417.4 million in Q4 2016. The Company's revenue numbers beat analysts' estimates of $472.5 million.
During Q4 2017, Generac's gross profit margin was marginally lower at 36.8% compared to 36.9% in Q4 2016. Favorable pricing impacts, along with improved leverage of fixed manufacturing costs, were offset by an unfavorable sales mix attributable to significantly higher International segment's and Mobile Products segment's sales, along with higher commodity prices. The Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $108.6 million in Q4 2017 compared to $91.0 million in Q4 2016.
During Q4 2017, Generac's net income attributable to common shareholders was $81.2 million, or $1.30 per share, compared to $41.5 million, or $0.64 per share, in Q4 2016. The Company's reported quarter net income included the impact of a non-cash gain of $28.4 million, or $0.45 per share, from the revaluation of Generac's net deferred tax liabilities associated with the enactment of the Tax Cuts and Jobs Act 2017 (TCJA).
For Q4 2017, Generac's adjusted net income attributable to common shareholders was $85.9 million, or $1.37 per share, compared to $71.4 million, or $1.12 per share, in Q4 2016. The Company's earnings numbers beat Wall Street's estimates of $1.20 per share.
For FY17, Generac's net sales increased 15.8% to $1.67 billion compared to $1.44 billion in FY16, including a contribution from acquisitions of $69.7 million, resulting in a total organic sales growth of 11.0% for FY17.
During FY17, Generac's net income attributable to common shareholders was $159.4 million, or $2.56 per share, compared to $98.8 million, or $1.50 per share, in FY16. For FY17, Generac's adjusted net income attributable to common shareholders was $212.9 million, or $3.40 per share, compared to $198.3 million, or $3.03 per share, in FY16.
During Q4 2017, Generac's Residential Product segment's sales increased 11.2% to $265.5 million compared to $238.9 million in Q4 2016. The Company's Commercial & Industrial (C&I) Product segment's sales surged 27.1% to $188.3 million in the reported quarter compared to $148.1 million in the prior year's same quarter.
For Q4 2017, Generac's Domestic segment's sales increased 11.2% to $377.9 million compared to $339.7 million in Q4 2016. The segment's reported quarter experienced a strong growth in shipments of home standby generators, driven by an increased outage activity, along with the continuation of a significant growth for mobile products. The segment's adjusted EBITDA was $100.6 million, or 26.6% of net sales, in the reported quarter, versus $87.9 million, or 25.9% of net sales, in the prior year's comparable quarter. The segment's adjusted EBITDA margin benefitted from a favorable pricing environment, including lower promotional costs and improved overall leverage of fixed operating costs on the higher organic sales volumes.
During Q4 2017, Generac's International segment's sales surged 41.8% to $110.2 million compared to $77.7 million in Q4 2016, including the contribution from the Motortech acquisition of $9.6 million. The significant organic growth was due to increased shipments of both C&I and Residential products, primarily within the European region, together with a large project activity and the favorable impact of the stronger Euro. The segment's adjusted EBITDA improved to $10.5 million, or 9.6% of net sales, compared to $3.9 million, or 5.0% of net sales, in the prior year's corresponding quarter. The significant improvement in adjusted EBITDA margin was primarily due to an improved leverage of fixed operating costs on the significant increase in organic sales, as well as a favorable sales mix from higher-margin large project activity.
Generac's cash flow from operations was a quarterly record of $138.4 million compared to $123.9 million in Q4 2016. The Company's free cash flow was also a quarterly record of $121.8 million compared to $114.3 million in the year ago same period. Generac's cash flow from operations was $261.1 million in FY17 compared to $253.4 million in FY16, while its free cash flow was $227.9 million in FY17 compared to $222.9 million in FY16. The improvements in cash flows were driven by the increase in operating earnings and a larger benefit from working capital reduction. The Company's net leverage ratio declined to 2.5 times as of December 31, 2017, compared to 3.6 times as of December 31, 2016.
For FY18, Generac is forecasting net sales to grow between 3% to 5% on a y-o-y basis. The Company is estimating adjusted EBITDA margin to be between 19.0% to 19.5%. Generac is forecasting operating and free cash flow generation to be strong, with the conversion of adjusted net income to free cash flow expected to be over 90%.
Stock Performance Snapshot
March 20, 2018 - At Tuesday's closing bell, Generac Holdings' stock slightly climbed 0.49%, ending the trading session at $46.86.
Volume traded for the day: 303.45 thousand shares.
Stock performance in the last month – up 2.56%; previous six-month period – up 1.74%; and past twelve-month period – up 23.09%
After yesterday's close, Generac Holdings' market cap was at $2.90 billion.
Price to Earnings (P/E) ratio was at 22.34.
The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry. This sector was up 0.3% at the end of the session.
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