Why Brunswick (BC) Shares Are Falling Today

Kayode Omotosho /
2024/04/25 3:42 pm EDT

What Happened:

Shares of boat and marine manufacturer Brunswick (NYSE:BC) fell 7.8% in the afternoon session after the company reported first-quarter results with revenue and EPS guidance for the next quarter below Wall Street's expectations. Revenue was also underwhelming during the quarter, coming in roughly in line with analysts' estimates, as the company called out continued economic uncertainty. Management added that "Marine dealers, manufacturers and retailers continue to demonstrate caution with early-season wholesale ordering patterns, resulting in reduced shipment rates across our product businesses as compared to the first quarter of 2023 in which pipelines were being filled." Another concerning development during the quarter was the recorded cash burn. Overall, this was a weaker quarter for the company.

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What is the market telling us:

Brunswick's shares are somewhat volatile and over the last year have had 8 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Brunswick is down 15.6% since the beginning of the year, and at $80.23 per share it is trading 19% below its 52-week high of $99.01 from December 2023. Investors who bought $1,000 worth of Brunswick's shares 5 years ago would now be looking at an investment worth $1,654.

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