Earnings Preview: Brunswick Corporation

| About: Brunswick Corporation (BC)

Brunswick Corporation (NYSE:BC) is expected to report Q2 earnings before market open Thursday, July 24, with a conference call scheduled for 10:00 a.m. ET.


Analysts are looking for a loss of (12c) on revenue of $1.42B. The consensus range is (42c) to 36c for EPS, and revenue of $1.33B to $1.47B, according to First Call.

Analyst Views

In a July 11 note, Moody's Investors Services downgraded the long-term debt of Brunswick to Baa3 from Baa2, the agency's lowest investment-grade designation, on concerns for the health of the U.S. marine industry. Moody's said Brunswick's performance is not expected to significantly improve in the near-term and a $700M total revenue decrease to around $5B "is a possibility." The downgrade reflects the firm's view that the downturn in the marine market will continue into the foreseeable future and is worse than previous expectations.

Standard & Poor's also lowered its credit ratings on Brunswick to reflect "cyclical and secular trends in the recreational marine industry and their effect on Brunswick's credit quality." The long-term corporate-credit rating was cut to BB+ from BBB- and the short-term corporate credit-rating was lowered to B from A-3. Brunswick said this downgrade should have "no significant effect."