Briggs & Stratton Shares Dropped: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of engine maker Briggs & Stratton (NYS: BGG) were sputtering today, as they fell as much as 10% in intraday trading after the company reported its fiscal second-quarter results.

So what: On an adjusted basis, Briggs & Stratton's quarterly per-share profit clocked in at $0.06, a penny ahead of analysts' expectations. So at least there was something for investors to cheer.

On the other hand, revenue for the quarter was $447.9 million, down 0.5% from the prior year and lagging the $458.7 million estimate from Wall Street. The soft top line reflects the continued tough operating environment for the company, as Briggs & Stratton CEO Todd Teske pointed out that "levels of consumer spending for outdoor power equipment continues to be challenging in the United States and in Europe."

Now what: To a large extent, it's a waiting game for the company and shareholders as both groups wait for some stronger signs of turnaround in the economy and the lawn-and-garden industry. In the meantime, though, the company is doing what it can to right-size its operations and cut costs. In conjunction with its earnings announcement, Briggs & Stratton announced that it's taking further restructuring actions that include moving operations, shutting down some facilities, and idling others. These aren't encouraging actions for investors that had expected a quicker turnaround, but the hope would be that this helps the company better navigate the tough times still ahead.

Want to keep up to date on Briggs & Stratton?Add it to your watchlist.

At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributorMatt Koppenhefferhas no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter,@KoppTheFool, or onFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners