Generac Holdings (NYSE: GNRC) reported Q1 EPS of $0.41, in-line with the analyst estimate of $0.41. Revenue for the quarter came in at $331.8 million versus the consensus estimate of $321.82 million.

2017 Outlook Update

We are maintaining our prior guidance for full-year 2017. Net sales are still expected to increase between 5 to 7% as compared to the prior year, with core organic growth between 1 to 3%. Net income margins, before deducting for non-controlling interests, are still expected to be between 7.5 to 8.0%, while adjusted EBITDA margins, also before deducting for non-controlling interests, are still expected to be between 19.0 to 19.5%.

The top-line guidance assumes no material changes in the current macroeconomic environment and also assumes a power outage severity level for the remainder of the year similar to that experienced during 2016 excluding the impact of Hurricane Matthew. Operating and free cash flow generation is expected to improve over the remaining quarters and be strong for the full-year 2017, with the conversion of adjusted net income expected to be over 90%.

“As our end markets improve, we believe we continue to successfully transition Generac to be a more diversified business, and in the process, have greatly expanded our addressable markets thereby positioning us for future growth,” continued Mr. Jagdfeld. “We believe our Powering Ahead strategy will ensure that we are allocating our resources going forward to generate the best return for our shareholders.”

For earnings history and earnings-related data on Generac Holdings (GNRC) click here.