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What: Shares of Brunswick (NYSE:BC) were getting fired up today, climbing as much as 12% after issuing a strong quarterly report and improved guidance.
So what: The boat-and-engine maker delivered an adjusted profit of $1.23 per share, better than expectations of $1.08, as revenue edged up 5%, to $1.1 billion, helped by growth in outboard boat products, fitness equipment, and bowling products. Most importantly, the company lifted its outlook for the full year, saying it now expects earnings per share of $2.55-$2.65, up from a previous range of $2.30-$2.50. Analysts had called for $2.50. The increase is due, in part, to aspects outside of operations, including a favorable debt-financing agreement and a lower tax rate.
Now what: Despite a weak marine market, Brunswick keeps on pleasing the Street. Though management is only forecasting 4% sales growth for the year, improvements in profitability are enough to keep earnings growing a solid pace. Even with the sluggish economy, Brunswick looks like a decent bet, but if the recovery picks up and boat sales improve, the stock could surge once again.
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