The chart below shows how BC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BC sees a -0.16% change in stock price 10 days leading up to the earnings, and a +0.21% change 10 days following the report. On the earnings day itself, the stock moves by +1.10%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Cash Flow Conversion: Full year free cash flow conversion reached 92%, exceeding the annual target of 80%, demonstrating strong cash generation capabilities.
Share Repurchase Confidence: Brunswick Corporation repurchased $200 million of its own shares in 2024, representing approximately 4% of the company, reflecting confidence in its value and future prospects.
Market Share Increase: Mercury Marine gained 110 basis points of U.S. retail outboard engine market share during the year, outperforming the industry and indicating strong competitive positioning.
Member Trip Milestone: Freedom Boat Club achieved over 600,000 annual member trips for the second consecutive year, showcasing robust growth and customer engagement in its business model.
Strong Financial Position: The company ended 2024 with $287 million in cash while funding strategic growth initiatives, indicating a strong financial position to support future investments.
Negative
Decline in Boat Sales: U.S. new boat retail sales ended 2024 down high single digit percent versus 2023, indicating a challenging market environment.
Q4 Net Sales Decline: Net sales in Q4 were down 15% compared to the same quarter in 2023, reflecting continued weakness in the U.S. retail marine market.
Sales and Earnings Decline: Full year sales decreased by 18%, with adjusted diluted EPS down 48% to $4.57, highlighting significant earnings pressure.
Sales Decline and Challenges: The propulsion business experienced a 24% decrease in sales, with production rates in the U.S. down 65% in the second half of the year, indicating severe operational challenges.
Tariff and Currency Challenges: An anticipated annualized impact of approximately $35 million in tariffs for 2025, alongside an estimated $30-$40 million unfavorable earnings impact due to foreign exchange rates, presents significant headwinds.
Earnings call transcript: Brunswick beats Q4 2024 EPS forecast, stock dips
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