Generac (NYSE:GNRC) shares fell more than 12% in pre-open Wednesday after the company reported soft Q2 results and lowered its full-year outlook.
Generac posted a profit per share of $1.08 on revenue of $1 billion, which compares to the consensus for earnings of $1.16 per share on revenue of $979.5 million. Sales fell 23% year-over-year on strong weakness in the Residential business segment (-44% YoY).
“As expected, overall second quarter sales declined from a strong prior year comparable period that included the significant benefit of excess backlog reduction for home standby generators,” said Aaron Jagdfeld, president and chief executive officer.
“While leading indicators of end market demand remain strong and we continue to make progress in reducing field inventory levels, residential product sales were modestly lower than our expectations in the quarter as a softer consumer environment for home improvement impacted shipments of home standby generators and chore products.”
As a result, GNRC lowered 2023 revenue guidance to $4.063B at the mid-point, compared to the previous $4.2B. It also cut its 2023 EBITDA outlook by about $85M.