Brunswick Beats Q1 Estimates; Reiterates 2023 Guidance

Brunswick Corp BC reported Q1 2023 sales growth of 3% year-on-year, to $1.74 billion, beating the consensus of $1.71 billion.
Segment Sales: Propulsion increased 7% Y/Y, Engine Parts and Accessories fell 13%, Navico Group was down 11% Y/Y and Boat climbed 17%.
Selling, general and administrative expenses rose 10% Y/Y to $211.3 million.
Adjusted operating margin was 15.0%, and adjusted operating income for the quarter fell 2% Y/Y to $262.4 million.
The company held $399.7 million in cash and marketable securities as of Q1 2023. Net cash used for operating activities of continuing operations was $(14.5) million.
Adjusted EPS of $2.57 beat the analyst consensus of $2.38.
The company repurchased shares worth $60 million and paid dividends of $28.5 million.
Outlook: Brunswick reiterated guidance for 2023 sales of $6.8 billion - $7.2 billion (vs. consensus of $6.98 billion) and adjusted EPS of $9.50 - $11.00 (vs. consensus of $10.27).
The company expects share repurchases of above $200 million in 2023.
It sees Q2 net sales flat to slightly up Y/Y and adjusted EPS of $2.60 - $2.70 (vs. consensus of $3.03).
Price Action: BC shares are trading lower by 0.61% at $82.57 on the last check Thursday.

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