NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Generac Holdings Inc. (“Generac” or the “Company”) (NYSE: GNRC) in the United States District Court for the Western District of Wisconsin on behalf of all persons and entities who purchased or otherwise acquired Generac securities between May 3, 2023 and August 3, 2023, both dates inclusive (the “Class Period”). Investors have until January 22, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Generac designs, engineers and markets standby power generators. It produces generators for both industry and for home consumers. It also produces other products for industrial and personal use, such as heaters and pressure washers.
At the beginning of the Class Period, on May 3, 2023, the Company held its quarterly earnings call for investors. During the call, President and CEO Aaron P. Jagfeld (“Jagfeld”) noted the Company’s sales and earnings declined year-over-year and quarter-overquarter.
Nevertheless, Jagfeld gave investors an optimistic outlook, stating an expectation that “gross sales from residential energy technology products and services to deliver between $300 million and $350 million for the full year 2023.” He further indicated an expectation for improvement in the second half of 2023.
Later in the same earnings call, York A. Ragen (“Ragen”), Generac’s CFO and CAO, stated, “demand for our home standby products tends to be driven more by power outages than overall macroeconomic conditions,” giving investors the impression that Generac’s sales should remain steady in spite of worsening economic conditions in the U.S. and abroad.
Jagfeld later reiterated that macroeconomic factors are a secondary factor for the Company’s sales and growth, stating, “I think the biggest thing over my time here, almost 3 decades at the company, is that power outages trump the economy every day of the week.”
On August 2, 2023, the Company held its Q2 2023 earnings call. During that call, Jagfeld revealed lackluster quarterly results, including a $1 billion sales decrease year-over-year and that residential sales decreased 44%.
When explaining that decline, Jagfeld contradicted his May statements discounting macroeconomic trends. He said, “[the Company] underperformed our expectations as a result of the shift in consumer spending patterns,” thus admitting the importance of inflation on consumer spending. Consequently, Jagfeld advised investors, “[t]his weaker than previously expected demand environment is expected to persist in the second half of the year, also contributing to our lower outlooked for residential product sales.”
Generac’s share price dropped swiftly in the day after the earnings call. On August 1, 2023 shares closed to $153.38; by the close on August 3, 2023 shares plummeted to $110.77.
If you purchased or otherwise acquired Generac shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
