Briggs & Stratton Beats on EPS But GAAP Results Lag

Briggs & Stratton (NYSE: BGG  ) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Briggs & Stratton met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped to a loss.

Gross margins grew, operating margins increased, net margins contracted.

Revenue details
Briggs & Stratton logged revenue of $439.1 million. The five analysts polled by S&P Capital IQ predicted net sales of $442.3 million on the same basis. GAAP reported sales were 2.0% lower than the prior-year quarter's $447.9 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 $0.07. The five earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. GAAP EPS were -$0.02 for Q2 versus $0.05 per share for the prior-year quarter.

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 18.2%, 170 basis points better than the prior-year quarter. Operating margin was 2.5%, 240 basis points better than the prior-year quarter. Net margin was -0.1%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $723.6 million. On the bottom line, the average EPS estimate is $1.18.

Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $1.38.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 95 members out of 124 rating the stock outperform, and 29 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Briggs & Stratton a green thumbs-up, and 11 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 $22.33.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere


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