Boating group Brunswick flags "cautious" 2024 outlook
Investing.com -- Brunswick (NYSE:BC) has unveiled a weaker-than-anticipated full-year profit forecast, as the marine recreation group took a "cautious" stance despite hopes that a potential loosening in financial conditions could help reinvigorate dampened consumer demand.
The Illinois-based owner of boating brands like Quicksilver and Boston Whaler said it expects to post adjusted diluted earnings per share (EPS) of $7.00 to $8.00 in its 2024 fiscal year. Net sales are seen coming in at between $6.0 billion to $6.2 billion.
Bloomberg consensus estimates were calling for guidance of $8.69 and $6.34 billion, respectively.
"2024 has the potential to be a year of steadily easing financial conditions and while we enter the year with a cautious outlook, particularly in the first quarter," said Chief Executive David Foulkes in a statement.
In the fourth quarter, diluted income per-share from continuing operations dropped by 27.1% to $1.45, below projections of $1.65, as Foulkes said the firm dealt with a "challenging" macroeconomic backdrop that led to consumers reining in spending. However, he noted that demand for its products and services remained "resilient," particularly in its pricier brands.
New boat retail sales in the U.S. ended the year down in the mid to high single-digit on a percentage basis versus 2022, according to Brunswick. But Foulkes added that the company performed "slightly better than the overall market."
Shares in Brunswick rose in early U.S. trading on Thursday.
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