Briggs & Stratton Beats on EPS But GAAP Results Lag

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Briggs & Stratton (NYS: BGG) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Briggs & Stratton met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped to a loss.


Gross margins grew, operating margins increased, net margins contracted.

Revenue details
Briggs & Stratton logged revenue of $439.1 million. The five analysts polled by S&P Capital IQ predicted net sales of $442.3 million on the same basis. GAAP reported sales were 2.0% lower than the prior-year quarter's $447.9 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 $0.07. The five earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. GAAP EPS were -$0.02 for Q2 versus $0.05 per share for the prior-year quarter.

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 18.2%, 170 basis points better than the prior-year quarter. Operating margin was 2.5%, 240 basis points better than the prior-year quarter. Net margin was -0.1%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $723.6 million. On the bottom line, the average EPS estimate is $1.18.

Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $1.38.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 95 members out of 124 rating the stock outperform, and 29 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $22.33.

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The article Briggs & Stratton Beats on EPS But GAAP Results Lag originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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