Generac Holdings (NYSE: GNRC) reported Q1 EPS of $0.91, $0.13 better than the analyst estimate of $0.78. Revenue for the quarter came in at $470.4 million versus the consensus estimate of $451.13 million.

GUIDANCE:

The Company is increasing its prior guidance for revenue growth for full-year 2019, reflecting the stronger demand for Residential and C&I products, as well as the addition of the Neurio and Pika acquisitions. Depending on the severity of power outages during the year, full-year net sales are expected to grow by approximately 5 to 9%, which is an increase from the 3 to 7% growth previously expected. Core sales growth for the full year is expected to be approximately 3 to 7%, which is an increase from the 2 to 6% core growth previously expected. Seasonally, first half net sales are now expected to grow 12 to 13% on an as-reported basis, with growth in the second half expected to be approximately flat to up mid-single-digits, depending on the severity of power outages.

Net income margins, before deducting for noncontrolling interests, are now expected to be between 10.5 to 11.5% for the full-year 2019. Adjusted EBITDA margins, also before deducting for noncontrolling interests, are now expected to be between 19.5 to 20.5% for the year, depending on the severity of power outages during the year. This modest decline in margin outlook is primarily driven by the Neurio and Pika acquisitions, which include strategic investments in product development and infrastructure to build out and penetrate the new market opportunities around energy management and storage.

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

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