Why Generac's Stock Plummeted 34.9% in October
Investors in Generac Holdings (NYSE: GNRC), a leading manufacturer of generators and other power products, didn't have to wait until Halloween to get scared off last month. Providing a fright in the middle of the month, management dampened shareholders' spirits with a downwardly revised 2022 forecast. In the days that followed, Wall Street's pessimistic attitude toward the stock provided even more fuel for the sell-off.
According to data from S&P Global Market Intelligence, shares of Generac plunged 34.9% in October.
With a former customer, Pink Energy, ending its relationship with Generac and filing for bankruptcy, the company foresees a less auspicious 2022 than it had previously expected. But that's not the only factor figuring into management's downwardly revised forecast; warranty-related charges are another issue. As for revenue, management had originally guided for growth of 36% to 40% in 2022; it now forecasts the top line to rise 22% to 24%.
Source Fool.com
