Brunswick (NYSE:BC) Issues Quarterly Earnings Results, Beats Estimates By $0.23 EPS

Brunswick (NYSE:BC) released its quarterly earnings results on Thursday. The company reported $1.58 EPS for the quarter, topping the consensus estimate of $1.35 by $0.23, FiscalAI reports. Brunswick had a positive return on equity of 15.28% and a negative net margin of 1.53%. The company had revenue of $1.45 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter last year, the business posted $0.97 earnings per share. The firm’s revenue was up 6.9% on a year-over-year basis.

Here are the key takeaways from Brunswick’s conference call:

• Brunswick reported a strong third quarter, with sales up 7% to $1.5 billion, adjusted EPS up 63% to $1.58, and adjusted operating margin expanding 230 basis points to 10.1%. Management raised full-year adjusted EPS guidance to approximately $4.65 while maintaining revenue guidance of $5.7 billion-$5.8 billion.
• All reporting segments grew sales and expanded margins. Propulsion benefited from strong high-horsepower outboard demand, Engine Parts and Accessories posted its highest third-quarter sales since 2020 with a 24.6% margin, Navico Group continued its transformation, and the Boat segment benefited from premium-brand resilience, cost reductions, and Freedom Boat Club growth.
• Management highlighted several potential 2027 tailwinds, including three new Mercury outboard launches, continued repower and distribution share gains, Navico product introductions and OEM wins, the reversal of Boat Group facility-consolidation costs, and further efficiency improvements. Executives reiterated confidence in their strategic-plan targets of 5%-8% sales growth and 20%-25% operating leverage.
• Consumer and industry conditions remain challenging, particularly for value-oriented buyers, due to inflation, geopolitical uncertainty, and high borrowing costs. Additional material inflation, cautious dealer stocking, uncertainty around tariff refunds, and economic and trade volatility are expected to weigh on fourth-quarter results, while the company expects only modest pricing and further rationalization of value boat models.
• Brunswick generated $140 million of third-quarter free cash flow, repurchased $75 million of shares year to date, and retired $100 million of debt. The company raised its full-year share-repurchase target to more than $80 million and remains on track to meet or exceed its $160 million debt-reduction target.

Brunswick Trading Up 6.6%

NYSE:BC traded up $4.56 during mid-day trading on Thursday, hitting $73.41. 853,383 shares of the stock traded hands, compared to its average volume of 811,249. The company has a quick ratio of 0.65, a current ratio of 1.45 and a debt-to-equity ratio of 1.08. Brunswick has a 52 week low of $59.06 and a 52 week high of $90.25. The stock has a market capitalization of $4.76 billion, a price-to-earnings ratio of -56.14 and a beta of 1.38. The firm’s 50 day moving average is $69.16 and its two-hundred day moving average is $77.57.

Brunswick Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, November 24th will be issued a dividend of $0.44 per share. This represents a $1.76 annualized dividend and a yield of 2.4%. The ex-dividend date is Tuesday, November 24th. Brunswick’s dividend payout ratio is presently -134.35%.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on BC shares. Weiss Ratings restated a “sell (d+)” rating on shares of Brunswick in a research report on Monday, September 21st. Truist Financial dropped their target price on Brunswick from $94.00 to $81.00 and set a “buy” rating for the company in a report on Friday, October 23rd. Morgan Stanley set a $74.00 target price on Brunswick in a research report on Monday. JPMorgan Chase & Co. decreased their price target on Brunswick from $80.00 to $66.00 and set a “neutral” rating on the stock in a report on Friday, October 23rd. Finally, Royal Bank Of Canada set a $66.00 price target on Brunswick in a report on Friday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Brunswick currently has a consensus rating of “Moderate Buy” and an average price target of $84.60.

Brunswick Company Profile

Brunswick Corporation (NYSE:BC) is a marine recreation company that designs, manufactures and distributes products used in boating and related recreational activities. Its portfolio includes marine propulsion systems, boats, engines, electronics, boat control systems and other components, as well as parts and accessories.

The company’s marine businesses include Mercury Marine, which produces outboard, sterndrive and inboard engines, and a range of boat brands such as Boston Whaler, Sea Ray, Bayliner, Lund, Harris and Princecraft.