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Briggs & Stratton Whiffs on Earnings

By Seth Jayson - Updated Apr 10, 2017 at 1:47PM

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Just the facts, Fool.

Briggs & Stratton (NYSE: BGG) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q3), Briggs & Stratton missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped. GAAP earnings per share contracted slightly.

Gross margins grew, operating margins shrank, net margins grew.

Revenue details
Briggs & Stratton notched revenue of $637.3 million. The four analysts polled by S&P Capital IQ hoped for a top line of $687.2 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $720.1 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 $0.89. The four earnings estimates compiled by S&P Capital IQ averaged $1.04 per share. Non-GAAP EPS of $0.89 for Q3 were 10% lower than the prior-year quarter's $0.99 per share. GAAP EPS of $0.78 for Q3 were 2.5% lower than the prior-year quarter's $0.80 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 20.9%, 50 basis points better than the prior-year quarter. Operating margin was 9.8%, 40 basis points worse than the prior-year quarter. Net margin was 6.0%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $557.5 million. On the bottom line, the average EPS estimate is $0.50.

Next year's average estimate for revenue is $1.94 billion. The average EPS estimate is $1.20.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 91 members out of 120 rating the stock outperform, and 29 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Briggs & Stratton a green thumbs-up, and nine 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 $25.50.

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