Brunswick Corporation (BC) fell by 0.99% and closed at $48.96 per share during the second week of August 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -0.99%, 1.1%, and -2.4%, respectively, as of August 12. Brunswick is trading 0.44% below its 20-day moving average, 2.7% above its 50-day moving average, and 3.7% above its 200-day moving average.
Related ETFs and peers
The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 0.28% of its holdings in Brunswick. IVOG tracks a market-cap-weighted index of growth companies culled from the S&P 400. IVOG’s YTD price movement was 10.6% on August 12.
The iShares Dow Jones US ETF (IYY) invests 0.02% of its holdings in Brunswick. IYY tracks a broad, cap-weighted index of US companies covering 95% of the US market.
The market caps of Brunswick’ peers are as follows:
Brunswick’s key appointment
Phillip Haan has been appointed as the vice president of investor relations—effective from August 31, 2016. He will report to William L. Metzger, the senior vice president and CFO.
Performance in fiscal 2Q16
Brunswick reported fiscal 2Q16 net sales of $1.2 billion—a rise of 9.1% compared to net sales of $1.1 billion in fiscal 2Q15. Sales of the Marine Engine, Boat, and Fitness segments rose by 4.4%, 5.4%, and 32.2%, respectively, in fiscal 2Q16—compared to fiscal 2Q15.
The company’s cost of sales as a percentage of net sales fell by 0.05% and its operating earnings rose by 5.0% in fiscal 2Q16—compared to the same period last year. It reported restructuring and integration charges of $2.6 million in fiscal 2Q16.
Its net income and EPS (earnings per share) fell to $108.1 million and $1.17, respectively, in fiscal 2Q16—compared to $117.8 million and $1.25, respectively, in fiscal 2Q15. It reported adjusted EPS of $1.19 in fiscal 2Q16—a rise of 13.3% compared to fiscal 2Q15.
Brunswick’s cash and cash equivalents fell by 25.0% and its inventories rose by 3.2% in fiscal 2Q16—compared to fiscal 4Q15. Its current ratio and debt-to-equity ratio fell to 1.9x and 1.3x, respectively, in fiscal 2Q16—compared to 2.0x and 1.5x, respectively, in fiscal 4Q15.
Brunswick declared a regular quarterly dividend of $0.15 per share on its common stock. The dividend will be paid on September 15, 2016, to shareholders of record on August 23, 2016.
The company made the following projections for fiscal 2016:
- revenue growth rates of 10%–11%, which includes 5% from acquisitions announced in 2015 and 2016
- adjusted EPS of $3.40–$3.50
- positive free cash flow of more than $200 million
In the next part, we’ll look at Graphic Packaging Holding (GPK).