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GNRC.US
id: 832

Generac (GNRC) Missed Guidance Case

W.D. Wisconsin
Court
3:23-cv-00808
Case number
30 May 2023
Class period Start
03 Aug 2023
Class period End
22 Jan 2024
Lead Plaintiff motion deadline
  • In August 2023, Generac revised downward 2023 guidance.
  • $GNRC fell 24%, losing $2.3B of its shareholder value.
  • First claim already filed in Wisconsin by one of the affected stockholders.
On August 2, 2023, Generac (GNRC) announced revised downward guidance for 2023 due to “weakness in residential products.” The Company blamed the downturn on a “softer consumer spending environment” which led to weaker-than-expected sales of residential units.

On this news, $GNRC fell by over 24% and lost $2.3 billion of its market capitalization, seriously damaging investors.

Earlier, on May 3, 2023, during the earnings call, President & CEO Aaron P. Jagfeld gave investors an optimistic outlook.
  • He stated 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." Jagfeld further indicated an expectation for improvement in Q2 2023.
  • York A. Ragen, Generac’s CFO & 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.”
Considering all representations, investors have reasons to suspect Generac of misleading about true business prospects. The initial claim has been filed in Illinois by one of the affected stockholders.
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02 August 2023
Filing date
21 November 2023
Lead Plaintiff Deadline
22 January 2024
Judge
William M Conley
Collecting participants…

Generac Holdings Inc

Generac Holdings Inc. designs, manufactures, and sells power generation equipment, energy storage systems, energy management devices and solutions, and other power products for the residential, lig...

    Ticker
    GNRC.US
    ISIN
    US3687361044
    CIK
    1474735
    Sector
    Industrials
    Industry
    Specialty Industrial Machinery
    Country
    USA
    Address
    S45 W29290 Highway 59, Waukesha, WI, United States, 53189