The common stock shares of Generac Holdings Inc. skyrocketed $5.67 to trade at $34.00 per share on Oct. 31, the first day that trading resumed after Hurricane Sandy struck, as investors speculated that demand will grow for the Waukesha company’s portable generators in the aftermath of the storm.
As a result of the power outages caused the by the storm, the company is raising its sales growth guidance for full-year 2012 to the 40-percent range over the prior year.
Generac’s diluted net income per common share for 2012 is now expected to be in the range of $1.21 to $1.27, with adjusted diluted net income per common share of $2.95 to $3.00, compared with the $2.65 to $2.70 per share range previously expected.
“The events of the last few days continue to demonstrate for home owners and business owners the importance of having a backup plan for their power needs. Automatic standby generators have emerged as a cost effective and increasingly important part of those backup plans. As a result of the increased awareness these outage events provide, adoption rates for home standby and light commercial generators have accelerated over the last several years.” said Aaron Jagdfeld, president and chief executive officer. “Shipments of home standby generators were again strong during the third quarter and have continued to build towards a new and higher baseline level of demand over the longer-term.”
Generac spokesman Art Aiello said Generac has sent tens of thousands of portable and automatic standby generators to impacted areas.
To accommodate the increase in product demand, the company also has added shifts to its distribution center in Whitewater. While the distribution center typically runs one shift, it is currently running three shifts and shipping generators nearly 24 hours a day.
“At this point, it’s all hands on deck,” Aiello said.
