News

Brunswick Corporation BC is scheduled to report fourth-quarter 2023 results on Feb 1, 2024. In the last reported quarter, the company delivered an earnings surprise of 2.5%.

How are Estimates Placed?

The Zacks Consensus Estimate for Brunswick’s fourth-quarter earnings per share (EPS) is pegged at $1.66, indicating a decline of 16.6% from $1.99 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $1.4 billion. The metric suggests a decline of 9.3% from the year-ago quarter’s figure.

Brunswick Corporation Price and EPS Surprise

Let’s discuss the factors that are likely to be reflected in the quarter to be reported.

Factors to Note

Brunswick’s fourth-quarter performance is likely to have benefitted from strong high-horsepower outboard engine demand, new model introductions and marketing and promotional activities. This and strength in retailer stockings coupled with the positive reception of new product offerings are likely to have driven strong retail pull in the to-be-reported quarter.

The emphasis on the addition of Flite to its portfolio of brands (to tap into the emerging e-foiling market) and the rollout of Brunswick Finance (aimed at providing rapid customer finance approvals and supporting promotional financing) are likely to have aided the company’s performance in the fourth quarter.

However, lower order rates for Mercury engines and Navico Group OEM products (comprising of smaller, budget-friendly boats and lower horsepower engines) on account of production rate adjustments are likely to have affected the company’s top line in the to-be-reported quarter.

The Zacks Consensus Estimate for fourth-quarter Engine Parts and Accessories sales is pegged at $239 million, indicating a fall of 49% from $467 million reported in the year-ago quarter. The consensus mark for Propulsion segment sales is pegged at $658 million compared with $670 million reported in the prior-year quarter.

Uncertain macroeconomic environment and consumer challenges on account of elevated prices, high interest rates, and limited credit availability are likely to have affected the company’s bottom line in the fourth quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Brunswick this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

Earnings ESP: Brunswick has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

MGM Resorts International MGM has an Earnings ESP of +14.99% and a Zacks Rank #3.

Shares of MGM Resorts have increased 5.9% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.

Boyd Gaming Corporation BYD has an Earnings ESP of +1.10% and a Zacks Rank #3.

Shares of Boyd Gaming have gained 3.7% in the past year. BYD’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.9%.

Hasbro, Inc. HAS has an Earnings ESP of +5.05% and a Zacks Rank #3.

Hasbro’s shares have declined 13.1% in the past year. HAS’ earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 22.4%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.