Back to top

Bear Of The Day Briggs And Stratton (BGG)

Read MoreHide Full Article

Briggs & Stratton (BGG - Free Report) is a Zacks Rank #5 (Strong Sell) despite having posted a beat at its most recent earnings event.  Let's take a look at why this stock can have a solid Value Style Score of A as well as a strong Growth Score of B and still be The Bear Of The Day.

Description

Briggs & Stratton Corporation makes and sells, and services gasoline engines for outdoor power equipment to the original equipment manufacturers. Briggs & Stratton Corporation was founded in 1908 and is headquartered in Wauwatosa, Wisconsin.

Earnings

On April 25, the company reported earnings of $0.84 per share, and that was two cents better than the consensus estimate.  Revenues rose 1.2% on a year over year basis to $604M and that was below the $616M consensus estimate.

The company also lowered guidance for FY18 to $1.33 - $1.50 from $1.45 - $1.62 when the consensus estimate was calling for $1.54. The company also lowered the top end of the projected revenue range but the guide was still within the consensus estimate.

Estimates

Following this report, estimates tumbled.  The current quarter saw numbers slide from $0.72 to $0.48 and the following quarter also fell by a penny.

The Zacks Consensus Estimate for 2018 moved from $1.53 to $1.31 while next year saw a decrease from $1.79 to $1.60.

The Zacks Rank is built on the movement of earnings estimates.  When estimates move down, the Rank tends to follow.

Chart

 

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Briggs & Stratton Corporation (BGG) - free report >>

More from Zacks Bear of the Day

You May Like