Brunswick Corp (
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.
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
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.
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
Jared A Levy is the Momentum Stock Strategist for
Zacks.com. He is also the Editor in charge of the market-beating
Zacks Whisper Trader Service.
BRUNSWICK CORP (
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