NYSE$BC

Brunswick Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Brunswick reported fourth quarter results, with strong cash generation and market share gains.

Brunswick Corporation reported a decrease in net sales and diluted EPS for the fourth quarter of 2023 compared to the record fourth quarter of 2022. Despite a challenging macroeconomic environment, the company highlighted strong cash generation, high-horsepower outboard market share gains, and steady operating performance.

  • Net sales decreased due to measured wholesale ordering patterns and higher discounts.
  • Operating earnings and margin declined due to lower net sales and spending on growth initiatives.
  • Propulsion segment sales decreased, but operating margins improved due to cost control and reduced material costs.
  • Engine Parts and Accessories segment sales slightly decreased, with operating earnings and margins also declining.

Headline financials

Total Revenue

$1.36B

Previous: $1.58B-14.0%
EPS (adj)

$1.45

Previous: $1.99-27.1%
Capital Expenditures

-$56.2M

Previous: $89M-163.1%
Free Cash Flow

$473M

Previous: $186M+154.9%
Net Income

$60.9M

Previous: $142M-57.0%
Operating Income

$108M

Previous: $192M-43.5%
Gross Profit

$364M

Previous: $428M-14.9%
R&D Expense

$42.4M

No prior period
Stock-Based Comp

$7.4M

Previous: $5.1M+45.1%

Revenue & EPS history

Brunswick · Revenue · Quarterly

$1.36B

Q4 2023-14%vs Q4 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Brunswick · $1.49B total across 3 segments · Q3 2023

  • Propulsion
    $718M+16.7%
  • Boat
    $429M-16.1%
  • Engine P&A
    $345M-3.9%

Forward guidance

Brunswick anticipates U.S. marine industry retail unit sales to be flat versus 2023, net sales between $6.0 billion and $6.2 billion, adjusted operating margin of between 12.0 and 13.0 percent, free cash flow in excess of $350 million, adjusted diluted EPS in the range of $7.00 - $8.00, and first quarter 2024 revenue of between $1.3 and $1.4 billion, and adjusted EPS between $1.30 and $1.40.

Tailwinds

  • Potential for steadily easing financial conditions.
  • Launch of more than fifteen new products across businesses.
  • Focus on delivering steady free cash flow and resilient EPS.
  • Disciplined pipeline management and strong operational performance.
  • Continued investments in new products and growth.

Headwinds

  • Cautious outlook, particularly in the first quarter.
  • Uncertain consumer and business environment.
  • Impact of more measured wholesale ordering patterns by dealers, OEMs and retailers
  • Higher discounts in select segments
  • Softer marine OEM orders and the continued weak RV manufacturing environment

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.2%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.4%

Avg return

30 days after

52%

34 / 66 earnings

Positive

+10.8%

Q2 2013

Best reaction

-13.0%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-1.2%+5.6%
Q4 2025-4.4%+1.9%-5.4%
Q3 2025+8.5%+8.5%-1.3%
Q2 2025+6.7%+11.6%+17.6%
Q1 2025+5.7%+2.4%+9.9%
Q4 2024+1.3%-1.5%-10.7%
Q3 2024+4.9%+7.5%+7.0%
Q2 2024+8.8%+12.9%+9.6%
Q1 2024-5.9%-6.4%-7.7%
Q4 2023+6.1%+4.2%+8.9%
Q3 2023-1.0%+1.0%+13.8%
Q2 2023+0.4%+2.4%-2.8%
Q1 2023+2.1%+3.7%-6.7%
Q4 2022+7.2%+3.2%+2.6%
Q3 2022-0.1%+0.0%+1.6%
Q2 2022+4.1%-1.4%+1.3%
Q1 2022+1.4%+7.3%+1.5%
Q4 2021+3.7%+5.6%+7.5%
Q3 2021+3.0%+7.3%+10.3%
Q2 2021+7.2%+7.5%+5.6%
Q1 2021+1.6%+6.4%-3.1%
Q4 2020-5.5%-5.1%-3.4%
Q3 2020-1.1%+5.7%+18.3%
Q2 2020-7.4%-5.5%-14.2%
Q1 2020-9.4%-6.4%+12.9%
Q4 2019-0.1%-2.7%-15.5%
Q3 2019+2.3%+3.4%+0.2%
Q2 2019+2.2%+3.3%-5.7%
Q1 2019-7.4%-6.0%-20.6%
Q4 2018-4.8%-1.8%+5.7%
Q3 2018-9.6%-8.6%-5.1%
Q2 2018-5.3%-2.4%-0.7%
Q1 2018+2.3%+4.0%+8.0%
Q4 2017-4.7%-6.1%-2.5%
Q3 2017-13.0%-11.9%-8.6%
Q2 2017-5.7%-7.0%-11.7%
Q1 2017-6.2%-7.3%-9.6%
Q4 2016+3.6%+5.4%+7.0%
Q3 2016-7.1%-8.0%+6.0%
Q2 2016-1.4%-3.8%-8.7%
Q1 2016-6.4%
Q4 2015-5.5%
Q3 2015+8.1%
Q2 2015+0.0%
Q1 2015-9.2%
Q4 2014+5.2%
Q3 2014+3.7%
Q2 2014+1.1%
Q1 2014-4.2%
Q4 2013+2.6%
Q3 2013+2.7%
Q2 2013+10.8%
Q1 2013+2.8%
Q4 2012+9.6%
Q3 2012+8.5%
Q2 2012-1.6%
Q1 2012+2.4%
Q4 2009+3.9%
Q4 2011+3.9%
Q3 2010-0.8%
Q3 2011-0.8%
Q2 2011-1.1%
Q4 2010-1.1%
Q2 2010-1.4%
Q1 2011-1.4%
Q1 2010-1.4%

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