Briggs & Stratton Earnings: Here’s Why Investors are Selling Shares Now

Briggs & Stratton Corp. (NYSE:BGG) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.82%.

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Briggs & Stratton Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 10.1% to $0.89 in the quarter versus EPS of $0.99 in the year-earlier quarter.

Revenue: Decreased 11.5% to $637.26 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Briggs & Stratton Corp. reported adjusted EPS income of $0.89 per share. By that measure, the company missed the mean analyst estimate of $1.08. It missed the average revenue estimate of $707.67 million.

Quoting Management: “We continue to see soft demand across international markets for engines and products due to macroeconomic concerns weighing on the minds of consumers and unfavorable weather conditions particularly in Australasia. Brazil continues to be a bright spot for growing our international products business as our Branco acquisition is performing as anticipated,” commented Todd Teske, Chairman, President and Chief Executive Officer of Briggs & Stratton Corporation. “Here in the U.S., the spring lawn and garden season has been delayed by at least a few weeks due to a prolonged cold and wet spring in many parts of the country. This is significantly different from last year when we had an unusually early start to spring with very warm weather across the country. The drought that impacted our industry so significantly last season appears to be improving east of the Mississippi River which is encouraging for the upcoming season. Despite a later start to spring compared to last year, we are optimistic that the U.S. market will be in line with our anticipated growth projections of 4 to 6%.”

Key Stats (on next page)…

Revenue increased 45.14% from $439.07 million in the previous quarter. EPS increased 1171.43% from $0.07 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.44 to a profit $0.51. For the current year, the average estimate has moved up from a profit of $1.37 to a profit of $1.41 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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