Generac Holdings (NYSE:GNRC) shares rose 2% on Wednesday morning to erase an earlier decline of as much as 9.3% after the maker of home backup generators and solar equipment reported quarterly results.
Net income was $123 million, or $1.59 a share, for the fourth quarter, compared with $122.4 million, or $0.84 a share, a year earlier.
Adjusted earnings of $2.07 a share was in line with the average estimate of $2.09 a share among Wall Street analysts.
Sales rose 1.4% from a year earlier to $1.06 billion in the three-month period ended in December. The consensus estimate was $1.09 billion.
Management forecast that sales in 2024 will grow, mostly on the strength of residential product sales that increase by a percentage in the mid-teens.
“In 2024, we expect to return to consolidated sales growth and year-over-year margin expansion for the full year period while also continuing to invest for future growth,” Aaron Jagdfeld, president and chief executive of Generac (GNRC), said in a statement. “As reliance on electricity continues to increase and supply-demand imbalances remain a challenge for grid operators, we will continue to execute our strategic plan to lead the evolution to more resilient, efficient and sustainable energy solutions.”