Brunswick (BC) Enhances Strategies With Fliteboard Acquisition
Brunswick Corporation BC, the global leader in marine recreation, inked a deal to acquire Fliteboard, a leader in eFoiling technology. The move supports the company’s enhancement in electrification and shared-access strategies.
Fliteboard's combination of advanced hydrofoils and electric water propulsion will allow Brunswick to enter the growing electric-foiling surfboard market. This move also paves the path for potential technological, manufacturing, commercial, and consumer synergies within BC's existing portfolio, with Fliteboard operating as a business under Mercury Marine.
Given the combination of Brunswick's growth prospects and Fliteboard's innovative ethos and designs, the management is optimistic and anticipates the initiative to drive enhanced global expansion in the upcoming periods.
Focus on Mercury Marine
The company continues to expand its Mercury Marine brand by increasing its outboard propulsion presence in the US outboard retail market. Year to date, the U.S. outboard retail market share has increased 140 basis points from the prior year’s levels. This demonstrates the strength of BC's comprehensive propulsion product portfolio.
During the second quarter of 2023, the company introduced the first model in the Avator Electric outboard lineup, the Mercury Racing 500R outboard, to global customers. Brunswick also announced the commencement of serial production for the following two models.
Following the successful launch of Avator 7.5e, the company unveiled the Avator 20e and 35e electric propulsion systems on Aug 29, 2023. The new models (with built-in SmartCraft Connect module) give users full access to the Mercury Marine app and the option to connect extra Avator batteries to increase range and run time.
The company's Oakfield inventory remains appropriately stocked across most categories to cater to the upcoming peak season. BC concluded the second quarter with approximately 19,000 units in the global pipeline. The company is focused on ensuring the pipelines to remain healthy, exiting 2023. It also emphasizes on balancing the need for dealers and other channel partners to represent the portfolio well at their locations while maintaining inventory.
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Shares of Brunswick have increased 5.3% in the past year compared with the industry's 4.3% rise.
Zacks Rank & Key Picks
Brunswick currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are:
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The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests growth of 54.5% and 180.3%, respectively, from the year-ago period’s levels.
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The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS suggests increases of 104.9% and 537.9%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited OSW carries a Zacks Rank #2 (Buy) at present. It has a trailing four-quarter earnings surprise of 42.6%, on average. The stock has gained 28.9% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates growth of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
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