Brunswick Falls Over 2% After Q1 Earnings - Here's Why

Brunswick Corporation BC shares are trading lower in the premarket session on Thursday.

The company reported first-quarter adjusted earnings per share of $1.35, which is in line with the street view—quarterly revenues of $1.365 billion, which is also in line with the analyst consensus.

First-quarter sales were below the prior year by 22% due to the impact of continued measured wholesale ordering by dealers and OEMs, coupled with higher discounts in some business segments.

Operating earnings were down by 53% versus the prior year as a result of the impact of lower net sales, slightly higher input costs, and unfavorable changes in foreign currency exchange rates.

Adjusted operating margin contracted 460 basis points to 10.4%.

Cash and marketable securities totaled $560.3 million at the end of the first quarter, up $80.6 million from 2023 year-end levels.

“Our early season internal boat unit retail performance is tracking with our initial outlook of flat to 2023, with boat show results slightly above prior year levels on a unit basis and with a richer mix of premium products,” said Brunswick Chief Executive Officer David Foulkes.

“During the quarter, we successfully completed a planned debt issuance of $400 million to cover the refinance of our only near-term debt, further solidifying our cash position and balance sheet,” Foulkes added.

Outlook: The company reiterated FY24 net sales of $6.0 billion to $6.2 billion (estimate: $6.03 billion). Brunswick projects FY24 adjusted diluted EPS in the range of $7.00 to $8.00 (estimate: $7.42).

The company expects second-quarter net sales of $1.5 billion-$1.6 billion (estimate: $1.61 billion) and adjusted EPS of $1.85-$2.05 (estimate: $2.04).

Price Action: BC shares are trading lower by 2.47% to $84.00 premarket at last check Thursday.