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Bear Of The Day Briggs And Stratton (BGG)

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Briggs & Stratton (BGG) 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.


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.


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.


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.



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