Why Shares of Briggs & Stratton Are Crashing Today
Shares of Briggs & Stratton (NYSE: BGG) lost more than 40% of their value on Thursday morning after the company reported quarterly results that were well below expectations, cut its outlook for its next fiscal year, and slashed its dividend. The results finished off a nightmarish fiscal year for the small-engine and equipment maker, which is trying to revamp its business following the bankruptcy of major customer Sears Holdings.
Before the market opened on Thursday, Briggs & Stratton reported a fiscal fourth-quarter adjusted loss of $0.36 per share on revenue of $471.95 million. Analysts' consensus expectations had been for a profit of $0.45 per share on sales of $520 million. The company also said it expects to earn $0.20 to $0.40 per share in the new fiscal year, down from previous guidance for EPS of $1.20 to $1.40.
The company attributed the profit declines to weather issues, as well as costs associated with its restructuring efforts. The North American lawn-and-garden market was slow due to an "unusually wet, cool spring" and disruptions with channel partners, while in Europe, record high temperatures reduced demand for lawn equipment.
Source Fool.com
