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Brunswick Announces New Addition to Its Management Team

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Price movement

Brunswick Corporation (BC) has a market cap of $5.1 billion. It rose 0.16% to close at $55.82 per share on January 18, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 1.4%, 3.3%, and 2.4%, respectively, on the same day.

BC is trading 1.0% above its 20-day moving average, 8.0% above its 50-day moving average, and 15.5% above its 200-day moving average.

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Related ETF and peers

The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 0.28% of its holdings in Brunswick. The YTD price movement of IVOG was 1.5% on January 18.

The market caps of Brunswick’s competitors are as follows:

  • Caterpillar (CAT) — $54.6 billion
  • Cummins (CMI) — $23.5 billion

Latest news on BC

Jaime A. Irick has been appointed as the president of Brunswick’s Fitness division, effective immediately. Irick will report to Mark D. Schwabero, the company’s chairman and chief executive officer.

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Brunswick’s performance in fiscal 3Q16

Brunswick (BC) reported fiscal 3Q16 net sales of $1.1 billion—a rise of 10.2% over its net sales of $991.9 million in fiscal 3Q15. Sales from the Marine Engine, Boat, and Fitness segments rose 6.4%, 13.2%, and 20.3%, respectively, between fiscal 3Q15 and fiscal 3Q16.

The company’s operating margin narrowed by 50 basis points, and it reported restructuring and integration charges of $2.4 million in fiscal 3Q16.

BC’s net income and EPS (earnings per share) rose to $85.4 million and $0.93, respectively, in fiscal 3Q16, compared to $75.9 million and $0.81, respectively, in fiscal 3Q15. It reported adjusted EPS of $0.91 in fiscal 3Q16, a YoY (year-over-year) rise of 18.2%.

Brunswick’s cash and cash equivalents fell 33.5%, and its inventories rose 10.2% between fiscal 4Q15 and fiscal 3Q16.

Projections

Brunswick Corporation (BC) made the following projections for fiscal 2016:

  • revenue growth rate of ~10%
  • adjusted EPS in the range of $3.45–$3.50
  • positive free cash flow of more than ~$215 million

In the next part, we’ll look at Under Armour (UAA).

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