Brunswick Corp - Momentum


Brunswick Corp ( BC )

This diversified recreation and lifestyle company does much more than bowling pins and pool tables.  As one of the world's most profitable companies in the lifestyle and recreation space, Brunswick might be worth a look, especially for those of you who are not familiar with all of its brands.   

Company Description
Brunswick Corp is best known for making bowling and billiard equipment that bears their name, but the 165 year old company has gone through a world of changes over the past 25 years, evolving into a much more diverse company with high power brands across several industries; from Life Fitness and Hammer-strength in their fitness division to some of the top names in marine boating like Bayliner, SeaRay, Cabo Yackts and more. Brunswick also manufactures marine engines and accessories under the Mercury, Mariner, and others; not to mention they are still a leader in the bowling and billiards space.

Financial Profile & Earnings

BC is a small-cap (2.30 billion) company that is trading at about 17 times forward (expectations for next quarter) earnings.  BC became a Zacks Rank 1 strong buy on March 10th, 2011.

2011 revenues at Brunswick Corporation totaled $3.7B, while annual earnings equaled $1.17 per share.

Brunswick reported a year over year sales increase of 8.27% compared to full year 2010 and 68% growth in earnings during the same period.  Brunswick did report a loss of 30 cents, which was 10 cents better than Zacks Consensus Estimates for the quarter.  

For the year, adjusted EPS increased by $1.63. At year-end, our cash from marketable securities totaled $508 million.

Moving forward
CEO Dusty McCoy noted Market share gains throughout the company in 2011 along with improved production and operating efficiencies.   Generated 10% revenue growth and increased our operating earnings by $176 million.

2011 was an overall good year for the company and in 2012; the company believes that "global economic and marine markets in 2012 will remain challenging, yet comparable to 2011." The company is targeting mid-single digit revenue growth in 2012 along with a strong increase in operating earnings in what they see as a flat marine market environment.

In the past 30 days, we have seen upward revisions for the current and next quarter as well as FY2012 and 2013.  The Zacks Consensus Estimate is higher than it was a month ago for each of those periods. 

For the coming quarter, Brunswick is expected to 38 cents per share when they report on April 26th. For the full year (FY2012), analysts expect EPS to come in at $1.46, which would equate to 25% earnings growth for the full year.

The stock's bullish momentum over the past several months and recent strength in the past few weeks shows that investors are feeling confident that consumers may be looking to more leisure in 2012. 

 Jared A Levy is the Momentum Stock Strategist for He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.

BRUNSWICK CORP ( BC ): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: BC

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