NEW YORK (TheStreet) -- Shares of Generac(GNRC) - Get Report were gaining 12.5% to $30.35 on Wednesday after the backup power generator maker beat analysts' estimates for earnings in the third quarter.

Generac reported earnings of 92 cents a share for the third quarter, above analysts' estimates of 79 cents a share. Revenue grew 2% year over year to $359.29 million for the quarter, beating analysts' estimates of $335.49 million.

"We are pleased with our overall financial results for the quarter as we saw strong sequential improvement in both sales and margins, which were in line with our expectations," President and CEO Aaron Jagdfeld said in a statement. "Despite the ongoing low power outage environment, shipments of home standby generators increased significantly relative to the first half of 2015 as field inventory returned to a more normalized level."

The company said it expects to report revenue of about $1.3 billion for full year 2015, compared to analysts' estimates of $1.29 billion.

About 2.7 million shares of Generac were traded by 12:44 p.m. Wednesday, above the company's average trading volume of about 1.1 million shares a day.

TheStreet Ratings team rates GENERAC HOLDINGS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate GENERAC HOLDINGS INC (GNRC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

You can view the full analysis from the report here: GNRC

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