Brunswick (NYSE: BC) reported Q3 EPS of $0.91, $0.08 worse than the analyst estimate of $0.99. Revenue for the quarter came in at $1.14 billion versus the consensus estimate of $1.16 billion.

GUIDANCE:

Brunswick sees FY2017 EPS of $3.85-$3.87, versus the consensus of $4.04.

"Despite unanticipated headwinds, 2017 is expected to be another year of strong revenue and earnings performance, along with excellent cash flow generation,” said Schwabero. “Our Marine Engine segment continues to perform as anticipated, and we expect our collective marine businesses to continue to generate solid top-line growth

over the remainder of the year. We also plan for our Fitness segment to report fourth quarter sales growth consistent with third quarter growth. As a result, our consolidated plan reflects revenue growth rates in 2017 of approximately 7 percent for the year, with a slightly lower growth rate in the fourth quarter.

“For the full year, we anticipate a modest decrease in operating margins. Gross margin percentage will be down for the year, but not to the same degree as our year-to-date comparisons. Operating expenses are estimated to increase for full-year 2017, including continued investments in advance of planned new product introductions, but on a percentage of sales basis, are expected to be at lower levels than those of 2016. Additionally, for 2017, our expectation remains that we will generate positive free cash flow in excess of $250 million,” Schwabero said.

"We are lowering our guidance for the year to $3.85 to $3.87,” Schwabero continued. "This adjustment reflects our third quarter results, and our view that certain market headwinds faced in the third quarter in our fitness and large fiberglass sterndrive / inboard boat businesses will continue to impact the fourth quarter,” Schwabero said.

For earnings history and earnings-related data on Brunswick (BC) click here.