Generac CEO on Hurricane Ida: “the power outages could be a long-term event”

Shares of Generac Holdings Inc (NYSE: GNRC) continued their rally on Monday, gaining about 3.0% as Hurricane Ida caused power outages in Louisiana, leading to an increase in demand. The stock had already started pushing up in anticipation of the storm and has climbed by more than 15% since August 17^th.

CEO Aaron Jagdfeld’s comments on CNBC’s “Squawk on the Street”

CEO Aaron Jagdfeld expects the power outages to be a “very long-term event”. Acknowledging a rise in demand, he said on CNBC’s “Squawk on the Street”:

The $28 billion company now has a price to earnings ratio of 55.80.

Impact on the company’s previous guidance for 2021

According to the chief executive, demand from a storm like this is expected to keep strong up to twelve months after it has passed. Jagdfeld also agreed that the increase in demand could be “incremental” to the company’s previous guidance for 2021.

As per Jagdfeld, weather extremities and the Coronavirus pandemic are increasingly making backup power a priority for people as well as businesses. Generac reported its Q2 financial results last month.