Generac Stock Is Tumbling. Sales Have Slowed, and Inventory Is Piling Up.

The second half of the year isn’t going as well as standby-power company


Generac Holdings


expected. Channel inventories are hurting sales, and that is crushing shares. Still, there should be brighter days ahead after this period of stormy weather.

Wednesday morning,


Generac


(ticker: GNRC) updated full-year sales guidance. Management now expects sales in 2022 to grow between 22% and 24% compared with 2021. That isn’t bad growth, but prior expectations had called for 36% to 40% growth. The cut amounts to about $560 million in lost sales or almost 11% of Wall Street’s $5.2 billion estimate for 2022 Generac’s top-line revenue.