By Senad Karaahmetovic
Generac (NYSE:GNRC) shares tumbled 15% in pre-market trading Wednesday after the company lowered its full-year sales growth guidance.
Generac now sees net sales growing between 22% and 24%, much lower than the prior forecast of 36% to 40%. The adjusted EBITDA margin is seen at 18-19%, down from 21.5-22.5%.
The company said that supply outweighed demand in the Q3, which resulted in “higher field inventory levels and lower home standby generator orders from our channel partners than previously expected even as end customer demand continues to be strong driven by elevated power outages, most notably from Hurricane Ian.”
“Additionally in the quarter, clean energy product shipments were negatively impacted by a large customer which ceased operations and has since filed for bankruptcy protection,” Generac said.
In addition to slashing the full-year forecast, Generac also reported preliminary Q3 results. Net sales are estimated at $1.09 billion while preliminary adjusted EBITDA was reported at $184 million, a significant miss compared to the consensus of $308.1 million.