Briggs & Stratton Beats on EPS, but GAAP Results Lag

Briggs & Stratton (NYSE: BGG  ) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 1 (Q3), Briggs & Stratton missed slightly on revenues and beat slightly on earnings per share.

Compared with the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank significantly.

Margins shrank across the board.

Revenue details
Briggs & Stratton booked revenue of $720.1 million. The five analysts polled by S&P Capital IQ looked for a top line of $734.0 million on the same basis. GAAP reported sales were 0.0% lower than the prior-year quarter's $720.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.99. The six earnings estimates compiled by S&P Capital IQ forecast $0.97 per share. GAAP EPS of $0.80 for Q3 were 22% lower than the prior-year quarter's $1.02 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.4%, 40 basis points worse than the prior-year quarter. Operating margin was 10.2%, 70 basis points worse than the prior-year quarter. Net margin was 5.5%, 170 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $621.9 million. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $2.21 billion. The average EPS estimate is $1.25.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 90 members out of 120 rating the stock outperform, and 30 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Briggs & Stratton a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Briggs & Stratton is outperform, with an average price target of $20.00.

Can your retirement portfolio provide you with enough income to last? You'll need more than Briggs & Stratton. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Get instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1874214, ~/Articles/ArticleHandler.aspx, 4/19/2014 2:14:39 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement