Generac Holdings (NYSE: GNRC) reported Q4 EPS of $1.37, $0.18 better than the analyst estimate of $1.19. Revenue for the quarter came in at $488 million versus the consensus estimate of $475.15 million.

2018 Outlook

The Company is initiating guidance for 2018 with net sales expected to increase between 3 to 5% as compared to the prior year, which includes a favorable foreign currency impact of between 1 to 2%. Excluding the benefit of elevated portable generator shipments during 2017 related to major outage events from the active hurricane season, net sales are expected to increase between 7 to 9% as compared to the prior year. This top-line guidance assumes no major outage events and a baseline power outage severity level similar to the longer-term average. Should the baseline power outage environment in 2018 be higher, or if there is “major” outage activity during the year, it is likely the Company could exceed these expectations.

Net income margins, before deducting for non-controlling interests, are expected to be between 9.5 to 10.0% for the full-year 2018, with adjusted EBITDA margins, also before deducting for non-controlling interests, expected to be between 19.0 to 19.5% for the year.

Operating and free cash flow generation is expected to be strong, with the conversion of adjusted net income to free cash flow expected to be over 90%.

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