Starting off the guidance cut is an expected ful-year net sales growth range of 22% to 24%. That’s down from the previous guidance, which had the company expecting net sales growth between 36% and 40% for full-year 2022.
To go along with that, Generac says it now expects the net income margin for 2022 to range between 9% and 10%. The company’s prior guidance had it expecting the net income margin to range from 13% to 14%.
The final guidance update from the company is for its adjusted EBITDA margin. This is now expected to come in between 18% and 19%. Yet again, that’s lower than prior guidance for between 21.5% and 22.5%.
Preliminary Q3 Results Aren’t Helping GNRC Stock
The company’s preliminary results for the third quarter of 2022 aren’t helping things, either. They include adjusted earnings per share () of $1.75. That’s nowhere close to the $3.21 per share that Wall Street is expecting. It’s also a drop from the $2.35 per share reported the same time last year.
Generac’s preliminary revenue of $1.09 billion is also a disappointment. That’s another miss next to analysts’ estimate of $1.33 billion, even if it does represent a 15% year-over-year (YOY) increase from $943 million.
All of this news has heavy trading dragging GNRC stock down as traders sell shares. As of this writing, more than 4 million shares have changed hands. That’s well above the daily average trading volume of about 1.3 million shares.
GNRC stock is down 20.1% as of Wednesday morning.
Investors looking for more stock market news will want to stick around!
We’ve got all of the latest stock market news traders need to know about for Wednesday! A few examples include what has shares of airline stocks, Xpeng (NYSE:XPEV) and Zymeworks (NYSE:ZYME) stock on the move today. You can catch up on all of that news at the following links!
More Wednesday Stock Market News
- Why Are Airline Stocks UAL, DAL, AAL Up Today?
- Dear XPEV Stock Fans, Mark Your Calendars for Oct. 24
- Why Is Zymeworks (ZYME) Stock Up Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.