Generac Holdings Inc. (NYSE:GNRC) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.5% to hit US$942m. Generac Holdings reported statutory earnings per share (EPS) US$0.73, which was a notable 11% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Generac Holdings after the latest results.

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Taking into account the latest results, the current consensus from Generac Holdings' 24 analysts is for revenues of US$4.45b in 2025. This would reflect a modest 2.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 4.5% to US$6.06. Before this earnings report, the analysts had been forecasting revenues of US$4.51b and earnings per share (EPS) of US$6.56 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Generac Holdings

It might be a surprise to learn that the consensus price target fell 5.9% to US$156, with the analysts clearly linking lower forecast earnings to the performance of the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Generac Holdings, with the most bullish analyst valuing it at US$205 and the most bearish at US$122 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Generac Holdings' revenue growth is expected to slow, with the forecast 3.2% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Generac Holdings.

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The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Generac Holdings going out to 2027, and you can see them free on our platform here.

Even so, be aware that  Generac Holdings is showing  1 warning sign in our investment analysis, you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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