Briggs & Stratton Beats Estimates but Has a Dismal Quarter

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

The 10-second takeaway
For the quarter ended Jan. 1 (Q2), Briggs & Stratton missed on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly, and earnings per share increased.

Gross margins dropped, operating margins shrank, net margins improved.

Revenue details
Briggs & Stratton chalked up revenue of $447.9 million. The six analysts polled by S&P Capital IQ predicted a top line of $460.6 million. Sales were 0.5% lower than the prior-year quarter's $450.3 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.05. The six earnings estimates compiled by S&P Capital IQ averaged $0.05 per share. GAAP EPS were $0.05 for Q2 versus -$0.03 per share for the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 16.5%, 90 basis points worse than the prior-year quarter. Operating margin was 0.1%, 150 basis points worse than the prior-year quarter. Net margin was 0.6%, 90 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $739.7 million. On the bottom line, the average EPS estimate is $1.02.

Next year's average estimate for revenue is $2.22 billion. The average EPS estimate is $1.29.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 90 members out of 121 rating the stock outperform, and 31 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Briggs & Stratton a green thumbs-up, and 14 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 $20.00.

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At the time this article was published 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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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