Brunswick reports Q3 adjusted EPS $1.17, consensus $1.20

Reports Q3 revenue $1.27B, consensus $1.29B. CEO David Foulkes said, “Our businesses delivered solid results in the quarter, as continued market share gains, wealth of new products, and expanded contribution from recurring revenue businesses, resulted in financial performance in-line with expectations, despite the challenging marine market. We continue to tightly manage field inventory across all our channels, and have adjusted production accordingly, ending the quarter with 10 thousand 7 hundred units in the U.S. pipeline, around 200 units below prior year….As we enter the final months of the year, we estimate full-year new boat retail unit sales to finish in-line with our expectations of down approximately 10% vs. prior year. With the core retail selling season behind us and retail discounting levels remaining elevated, dealer re-ordering in some segments is slower than anticipated, leading most boat OEMs to maintain lower production rates, impacting Propulsion and Navico Group OEM orders. However, our aftermarket-based engine parts, accessories, and distribution businesses, and Freedom Boat Club continue to perform well as boating participation remains strong…We also increased the size of our commercial paper program, permitting the issuance of commercial paper notes, also up to $1.0B, to provide further capital flexibility.”