Advertisement
Singapore Markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • Nikkei

    40,369.44
    +201.37 (+0.50%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • BTC-USD

    69,900.77
    -477.54 (-0.68%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • FTSE Bursa Malaysia

    1,536.07
    +5.47 (+0.36%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

Generac (GNRC) Makes Minority Equity Investment in WATT

Generac Holdings GNRC has announced a minority equity investment in WATT Fuel Cell Corp (“WATT”) to develop low-emission solutions and cater to the resiliency needs of its customers.

A member of Generac’s team will join the WATT board of directors as part of the investment. The minority equity investment was completed on Nov 23, 2022.

Generac plans to combine WATT’s low emissions Solid Oxide Fuel Cell stacks and systems, along with the company’s clean energy products like microinverters and battery storage system solutions, to provide low-carbon energy solutions.

Generac Holdings Inc. Price and Consensus

Generac Holdings Inc. Price and Consensus
Generac Holdings Inc. Price and Consensus

Generac Holdings Inc. price-consensus-chart | Generac Holdings Inc. Quote

ADVERTISEMENT

The Imperium fuel cell from WATT produces electricity via an electrochemical process from hydrogen molecules drawn from fuel choices, such as propane, natural gas or hydrogen, with no combustion and minimal pollutants.

WATT is likely to benefit from Generac’s expertise in residential home resiliency and clean energy products. This will help WATT to fasten the deployment of its fuel cell power generation technology and provide easy access to Generac's installation partner base.

In October, Generac acquired an industrial Internet of Things (IoT) software platform — Blue Pillar — for an undisclosed amount.

The acquisition will aid Generac in providing monitoring and control capability as a “built-in feature” through the integration of the Blue Pillar platform with its suite of power-generation products and Generac Grid Services’ projects.

Generac’s products are well-suited to accelerate the transition from traditional fossil fuel to clean, environment-friendly natural gas. The emergence of low-cost, environment-friendly natural gas generators has helped to increase the penetration of standby generators over the past decade in the light commercial market.

For 2022, Generac expects revenue growth between 22% and 24% compared with the previous guidance of 36-40%. The net income margin (before deducting for non-controlling interests) is expected to be 9-10%.

The company reported third-quarter 2022 adjusted earnings of $1.75 per share, which beat the Zacks Consensus Estimate by 8%. However, the bottom line decreased 25.5% year over year.

Net sales increased 15% year over year and came in at $1.09 billion but missed the consensus mark by 0.1%. The robust demand for Commercial & Industrial products boosted Generac’s third-quarter performance.

In the third quarter, the shipments of clean energy products were highly impacted by a leading customer who stopped its operations and filed for bankruptcy protection.

At present, GNRC carries a Zacks Rank #5 (Strong Sell). The stock has lost 75.4% in the past year against the sub-industry’s decline of 78.6%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader technology space are Arista Networks ANET, Plexus PLXS and Super Micro Computer SMCI, each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, up 8.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.

Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have jumped 9.2% in the past year.

The Zacks Consensus Estimate for Plexus 2023 earnings is pegged at $5.98 per share, rising 8.9% in the past 60 days.

Plexus’ earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 17.5%. Shares of PLXS have gained 16.7% in the past year.

The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.58 per share, rising 27.7% in the past 60 days.

Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 9.4%. Shares of SMCI have soared 95.1% in the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Plexus Corp. (PLXS) : Free Stock Analysis Report

Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report

Generac Holdings Inc. (GNRC) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research