WAUKESHA, Wis. (AP) — Generac Holdings Inc. on Tuesday reported fourth-quarter profit of $81.2 million.
On a per-share basis, the Waukesha, Wisconsin-based company said it had profit of $1.30. Earnings, adjusted for one-time gains and costs, were $1.37 per share.
The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.20 per share.
The generator maker posted revenue of $488 million in the period, also surpassing Street forecasts. Seven analysts surveyed by Zacks expected $472.5 million.
For the year, the company reported profit of $159.4 million, or $2.56 per share. Revenue was reported as $1.67 billion.
Generac Holdings shares have decreased 3 percent since the beginning of the year. The stock has climbed 14 percent in the last 12 months.
In another press release today, Generac announced the signing of a purchase agreement to acquire the shares of Selmec Equipos Industriales, S.A. de C.V. and its wholly-owned subsidiaries from Enesa Energia, S.A. de C.V. and Enesa, S.A. de C.V. The agreement includes the power generator product and after-sale support services of the business.
Selmec, founded in 1941 and headquartered in Mexico City, is a designer and manufacturer of industrial generators from 10 kW to 2,750 kW. With approximately 300 employees and 100,000 sq.ft. of production capacity, Selmec offers a market leading service platform and specialized engineering capabilities, together with robust integration, project management and remote monitoring services.
“Selmec’s deep experience in standby energy solutions, specifically telecom, data center and other mission critical applications, where power is essential for operational continuity, makes this a great fit for our Latin America strategy,” said Ricardo Navarro, Generac’s Senior Vice President – Latin America. “Acquiring Selmec will allow us to dynamically scale our existing Ottomotores business, leveraging both distribution and operational footprints of the combined businesses to offer the Latin American market a broader portfolio of products and solutions.”
“This is a very exciting development for Selmec to partner with a global leader in power generation technology to offer an expanded portfolio of products and solutions. This transaction will allow Selmec to continue to innovate, leveraging Generac’s technical capabilities and expertise especially in gaseous powered generation,” said Gabriel Hajj, Selmec’s CEO and Principal at Enesa. “We are pleased to join the Generac family, and we look forward to our continued success as we work together to provide greater value to our customers.”
The transaction is expected to close in three to six months following pending receipt of required regulatory approval.
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