Briggs & Stratton (NYSE:BGG) Shares Down 44.5% on Disappointing Earnings

Briggs & Stratton Co. (NYSE:BGG)’s stock price fell 44.5% during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $4.27 and last traded at $4.59, 5,388,605 shares traded hands during mid-day trading. An increase of 1,087% from the average session volume of 454,000 shares. The stock had previously closed at $8.27.

The industrial products company reported ($0.36) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.46 by ($0.82). Briggs & Stratton had a negative net margin of 2.54% and a positive return on equity of 4.22%. The business had revenue of $471.95 million for the quarter, compared to analysts’ expectations of $519.87 million. During the same quarter last year, the firm earned $0.47 EPS. The firm’s quarterly revenue was down 5.9% on a year-over-year basis.

Several brokerages have issued reports on BGG. Zacks Investment Research upgraded Briggs & Stratton from a “strong sell” rating to a “hold” rating in a research report on Monday, July 1st. ValuEngine upgraded Briggs & Stratton from a “sell” rating to a “hold” rating in a research report on Tuesday, July 2nd. Four equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $17.50.

Several large investors have recently made changes to their positions in BGG. Texas Permanent School Fund boosted its holdings in shares of Briggs & Stratton by 3.1% in the first quarter. Texas Permanent School Fund now owns 28,589 shares of the industrial products company’s stock valued at $338,000 after purchasing an additional 850 shares during the period. Comerica Bank boosted its holdings in shares of Briggs & Stratton by 2.6% in the first quarter. Comerica Bank now owns 41,969 shares of the industrial products company’s stock valued at $530,000 after purchasing an additional 1,051 shares during the period. Glen Harbor Capital Management LLC boosted its holdings in shares of Briggs & Stratton by 14.4% in the second quarter. Glen Harbor Capital Management LLC now owns 10,268 shares of the industrial products company’s stock valued at $105,000 after purchasing an additional 1,292 shares during the period. TD Asset Management Inc. boosted its holdings in shares of Briggs & Stratton by 22.8% in the first quarter. TD Asset Management Inc. now owns 13,961 shares of the industrial products company’s stock valued at $165,000 after purchasing an additional 2,593 shares during the period. Finally, Strs Ohio boosted its holdings in shares of Briggs & Stratton by 7.5% in the second quarter. Strs Ohio now owns 45,700 shares of the industrial products company’s stock valued at $467,000 after purchasing an additional 3,200 shares during the period. Institutional investors and hedge funds own 84.14% of the company’s stock.

The company has a current ratio of 1.34, a quick ratio of 0.50 and a debt-to-equity ratio of 0.39. The stock has a market cap of $364.22 million, a PE ratio of 3.56 and a beta of 1.08. The firm’s fifty day moving average is $9.54.

Briggs & Stratton Company Profile (NYSE:BGG)

Briggs & Stratton Corporation designs, manufactures, markets, sells, and services gasoline engines for outdoor power equipment to the original equipment manufacturers in the United States. It operates in two segments, Engines and Products. The Engines segment offers four-cycle aluminum alloy gasoline engines that are used primarily by the lawn and garden equipment industry.

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