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What: Shares of gas engine-maker Briggs & Stratton (NYSE:BGG) were cooling off today, falling as much as 13% after missing the mark in its quarterly earnings report.
So what: Briggs & Stratton said that earnings per share came in at just $0.89, below the $1.04 Wall Street expected. Revenue was also down 11.5%, to $637.3 million, and the company lowered its full-year guidance, as well. The engine manufacturer now expects EPS of just $1.16-$1.33, below estimates of $1.37. Management blamed "soft demand across international markets" for the reduced expectations. Weather was also a factor, as CEO Todd Teske said that a cold and wet start to spring delayed outdoor equipment purchases, the end market for B&S engines.
Now what: After starting out the day down 13%, shares battled back to trading just 5% by mid-day, so the market may not be seeing this as a catastrophe. Shares are reasonably priced after the drop, and it seems like the current headwinds are just temporary. I'd like to see revenue moving in the right direction first, but I wouldn't write off Briggs & Stratton just yet. You can stay up to date on all the information you need on B&S by adding it to your Watchlist here.
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