Briggs & Stratton (BGG) reported earnings on Thur 15 Aug 2019 (b/o)

• Briggs & Stratton said Thursday its board has cut its quarterly dividend to 5 cents a share from 14 cents. The new dividend is payable Oct. 2 to shareholders of record as of Sept. 18. "This action will help us to direct more funds to debt reduction and investments in attractive commercial products and enabling technologies," Chief Executive Todd Teske said in a statement. 
• The company, which makes gasoline engines for outdoor power equipment, said earlier Thursday it is closing a Kentucky small engine facility by fall of 2020.

** charts after earnings **

 

Briggs & Stratton misses by $0.81, misses on revs; slashes FY20 guidance, reduces dividend

Reports Q4 (Jun) loss of $0.36 per share, excluding non-recurring items, $0.81 worse than the S&P Capital IQ Consensus of $0.45; revenues fell 5.9% year/year to $471.95 mln vs the $519.87 mln S&P Capital IQ Consensus.

"We are clearly disappointed with the fiscal 2019 results. The fourth quarter capped a difficult year of unprecedented market challenges and higher than expected operational inefficiencies encountered during the ramp-up of our business optimization initiatives," stated Todd J. Teske, Chairman, President and Chief Executive Officer. "The North America lawn and garden market slowed considerably as the quarter progressed from unusually wet, cool spring weather compounded by near-term market disruptions with channel partners. Europe set record high temperatures in June and July to impede channel inventory reductions. While we achieved operational improvements on many of the business optimization program start-up issues, continued inefficiencies offset the benefit of those improvements, including near-term labor availability challenges."

In connection with its regular quarterly meeting, the Board of Directors of Briggs & Stratton Corporation declared a quarterly dividend of five cents ($0.05) per share on the common stock of the Corporation. The dividend is payable October 2, 2019, to shareholders of record at the close of business September 18, 2019. This dividend is a reduction from the previous level of $0.14 per share.

• "This action will help us to direct more funds to debt reduction and investments in attractive commercial products and enabling technologies. It sets a payout that we believe is sustainable and can grow over time. Going forward, we will continue to direct funds in those areas that deliver the highest risk-adjusted return on investment"

Co issues downside guidance for FY20, sees EPS of $0.20-0.40, excluding non-recurring items, vs. $1.22 S&P Capital IQ Consensus; sees FY20 revs of $1.91-1.97 bln vs. $1.99 bln S&P Capital IQ Consensus.

• This sales outlook compares with the Company's previous preliminary expectation of approximately $2.01 billion in sales for fiscal 2020. The revision to the outlook principally relates to the lower base sales for fiscal 2019, a reduction in the Company's estimate of the North American market due to near-term disruption caused by channel partner transitions and the prolonged impact of weather on Europe, which has experienced hot and dry conditions in the early months of summer.
• The EPS revision from the prior, preliminary estimate of approximately $1.30 per share, relates to the lower sales outlook, in addition to the impact on margin from expected lower production to reduce inventories and expected continuation of some operational inefficiencies into the first half of the fiscal year.

Earnings this week : Aug 12 - 16, 19 (wk 33)

Notable earnings reports:

• Barrick Gold (NYSE:GOLD), Sysco (NYSE:SYY), on August 12;
• JD.com (NASDAQ:JD), Tilray (NASDAQ:TLRY),  Grocery Outlet (GO), Huya (HUYA) and Brinker International on August 13; 
•  Myriad Genetics (MYGN), Sundial Growers (SNDL), Canada Goose (GOOS), Cisco Systems (NASDAQ:CSCO), Macy's (NYSE:M), Agilent Technologies (NYSE:A), Luckin Coffee (NASDAQ:LK), Canopy Growth (CGC)
   and Tencent (OTCPK:TCEHY) on August 14; 
• Tapestry (TPR), Nvidia (NASDAQ:NVDA), Alibaba (BABA) and Wal-Mart (WMT), Briggs & Stratton (BGG), Canadian Solar (CSIQ), PagSeguro Digital (PAGS),  Applied Materials (NASDAQ:AMAT), Nio (NYSE:NIO) and Madison Square Garden (NYSE:MSG) on August 15; 
• Deere (NYSE:DE) on August 16.

Briggs & Stratton (BGG) reported earnings on Wed 23 Jan 2019 (a/h)

• Briggs & Stratton is an American Fortune 1000 manufacturer of gasoline engines.
• Headquarters: Wauwatosa, Wisconsin. 
• briggsandstratton.com/na/en_us/home.html

** charts before earnings **

 

** charts after earnings **

Briggs & Stratton misses by $0.05, beats on revs; lowers FY19 guidance

• Reports Q2 (Dec) earnings of $0.20 per share, excluding items, $0.05 worse than the S&P Capital IQ Consensus of $0.25; revenues rose 13.3% year/year to $505.5 mln vs the $461.71 mln S&P Capital IQ Consensus.
• Co sees FY19 EPS of $1.10-1.30 before business optimization costs and other charges, prior guidance $1.40-1.60 vs. $1.44 S&P Capital IQ Consensus; revs of $1.9-1.96 bln, prior $1.95-2.01 bln vs. $1.94 bln S&P Capital IQ Consensus. Operating margin is expected to be 4.5% to 4.8% (previously 5.3% to 5.5%). The revision reflects the weather-related market softness in Europe and Australia and the impact of the Sears bankruptcy.
• Continues to anticipate capital expenditures of approximately $65 million. The company's business optimization program is now expected to generate pre-tax savings of $35 million to $40 million (previously $30 million to $35 million) by fiscal 2021. Total pre-tax charges to achieve the savings are now expected in the range of $60 million to $70 million (previously $50 million to $55 million), including fiscal 2019 program costs of $42 million to $46 million (previously $27 million to $32 million). The increase largely relates to higher than anticipated costs related to the ERP upgrade.

Earnings this week : Jan 21 - 25, 19 (wk 4)

Earnings confirmed to report this week:

Monday (Jan 21)    

• Market closed for Martin Luther King Jr. Day

Tuesday (Jan 22)

• Morning: ATI FITB GATX HAL HMST JNJ LOGI EDU PETS PLD SWK TRV
• Afternoon: AMTD CNMD COF FMBI HOPE IBKR IBM LRN LTXB NAVI RNST SFNC TBK UCBI WTFC ZION

Wednesday (Jan 23)

• Morning:  ABT APH ASML BKU BPOP CBU CMCSA HZO KMB NTRS PG PGR RES ROL SYF TDY TEL UTX WAT
• Afternoon:  ADTN AZPN BGG BXS CATY CCI CMRE CNS CP CTXS CVBF F FFBC FFIV HXL LRCX  LVS NXGN PTC RJF SLG SLM STL TCBI TER TRMK TXN UMPQ URI VAR XLNX

Thursday (Jan 24)

• Morning:  AAL AEP AIT AVX BANC BMY COLB DLX EWBC FCX GWW HBAN ISCA JBLU LUV MKC MMYT ORI RCI STM TAL TXT UNP VIVO WBS
• Afternoon: ALK ASB AVT CUBI DFS  ETFC FHB FII HTH INTC ISRG NBHC NSC OSIS RMD SBCF SBUX SIVB WAL WDC

Friday (Jan 25)

• Morning: ABBV ABCB APD CL DHI ERIC HRC IBKC LEA MOG.A NEE

This week's biggest % winners & losers : Jan 18 - 22, 16 (wk 3)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare:ESPR (18.79 +36.46%),CMRX (8.97 +25.1%),VSAR (14.04 +24.91%),DVAX (25.45 +20.9%)
• Industrials: BGG (19.1 +20.81%)
• Information Technology:SYNA (76.12 +20.61%)
• Financials:RSE (17.82 +32.1%),ECPG (21.39 +26.27%)
• Energy:ECR (1.3 +62.74%),UPL (2.45 +41.62%),GLNG (17.99 +32.67%),SWN (8.77 +30.9%),GMLP (13.1 +28.68%),LINE (1.28 +28%),CNX(6.16 +23.45%),CRC (1.56 +21.88%),RRC (26.5 +21.28%),UNT (8.67 +20.92%),BTE (1.97 +20.86%),NGL (12.21 +20.53%)

This week's top 20 % losers

• Healthcare:ALKS (36.16 -42.01%),CSII (8.74 -33.13%),CHMA (9.46 -23.52%),FLDM (6.7 -22.81%),NVCR (13.81 -22.37%),CFMS (11.55 -15.75%),AXDX (14.9 -15.24%),SRPT (12.11 -15.2%),MCRB (24.88 -15.17%),GKOS (16.34 -14.54%)
• Materials:FTK (6.29 -14.19%)
• Industrials:EGL (14.2 -51.8%),TPC (10.68 -22.04%)
• Information Technology:HDP (11.89 -28.24%),DGII (8.78 -16.14%)
• Financials:TCBI (33.46 -15.99%),LION (16.63 -15.02%),MTG (6.3 -14.98%)
• Energy:CJES (1.77 -34.69%),CCLP (6.59 -22.01%)

Long trade : BGG +20% (2/16)