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Generac shares hit all-time high on strong 2Q

WAUKESHA, Wis. (AP) -- Generac is getting a steady tail wind from the storms that ravaged the Northeast and other areas of the country, with shares hitting an all-time high after the generator company blew away Wall Street estimates for the second quarter.

It also upped sales growth expectations for the entire year.

Shares of Generac Holdings Inc. jumped 5 percent.

For the three months ended in June, net income was $28.3 million, or 40 cents per share, up from $9.3 million, or 14 cents per share, in the same quarter of 2012.

Adjusted for one-time charges, profit was 95 cents per share, easily outpacing the 77 cents Wall Street was looking for.

Revenue surged 45 percent to $346.7 million, though analysts until Tuesday had projected revenue of $328.4 million in revenue, according to FactSet.

The aftermath of Superstorm Sandy can still be seen on some streets in Manhattan, where generators sit outside locations that were flooded.

Sales of residential products jumped 59 percent to $196.6 million, helped by double-digit increases in shipments of both home standby and portable generators.

Generac credited the growth to a combination of factors including increased consumer awareness spurred by major power outages in recent years, expanded distribution, and an increase in sales and marketing initiatives.

Commercial and industrial product sales rose 32 percent to $133.4 million, helped by contributions from a recent acquisition.

The company boosted its full-year sales outlook pointing to continued strong demand for its home standby and portable generators and expected contributions from an acquisition set to close early in the third quarter.

Generac said it now expects a 2013 sales increase in the "low-20 percent" range, up from its previous prediction of an increase in the "low-to-mid teens."

Shares of the Waukesha, Wis., company rose $1.95, or 5 percent, to $42.98 in heavy morning trading, after peaking at $44.27, a new high for the stock..