Generac results beat estimates on strong demand for power backup equipment
Nov 1 (Reuters) - Power equipment maker Generac Holdings on Wednesday beat third-quarter estimates for profit and sales, aided by growing demand for backup generators, batteries and solar equipment.
Its commercial and industrial (C&I) business segment posted a 24% rise in sales, as extreme weather drove up power outages and power grid operators struggled to keep up with rising demand for electricity.
However, sticky inflation and high borrowing costs pressured consumer spending on home improvement, sending sales in Generac's residential segment, its biggest, down 15%.
"C&I product sales continued to experience significant growth over the prior year that once again exceeded our expectations," Generac CEO Aaron Jagdfeld said.
Adjusted net income for the quarter ended Sept. 30 came in at $1.64 per share, above analysts' expectations of $1.51 per share, according to LSEG data.
Revenue was $1.07 billion, beating estimates of $1.04 billion.
The company reiterated its full-year 2023 net sales outlook for a decline in the range of about 10% to 12% year-over-year. (Reporting by Kannaki Deka in Bengaluru; Editing by Devika Syamnath)
