Briggs & Stratton
The 10-second takeaway
For the quarter ended Sep. 30 (Q1), Briggs & Stratton missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share expanded.
Margins contracted across the board.
Briggs & Stratton notched revenue of $309.0 million. The five analysts polled by S&P Capital IQ foresaw net sales of $317.6 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $397.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.28. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.18 per share. GAAP EPS were -$0.35 for Q1 against -$0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.9%, 70 basis points worse than the prior-year quarter. Operating margin was -5.4%, 500 basis points worse than the prior-year quarter. Net margin was -5.3%, 400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $431.2 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $1.36.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 89 members out of 120 rating the stock outperform, and 31 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 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 $20.00.
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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Briggs & Stratton. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.