Briggs and Stratton collapsed 13% on Thursday April 17 when the company "...reported net income of $37.1 million, or 75 cents a share, for its fiscal third quarter, compared with $9.3 million, or 18 cents a share, a year earlier, when results included a large writedown. The company said it expected full-year earnings in a range of 60 cents to 71 cents per share, compared with Wall Street forecasts of a $1.19 per share in full-year profit."
This was not exactly the best news for the company, however it was great news for prospective investors. At this point we are now much clearer on where the company is going to get the money to pay its annual dividend. Also instructive was the fact that year-over-year 3Q earnings were higher but below the target analysts. This creates an opportunity to acquire this stock at a discount to the market.
Earnings Source:Thomson Reuters
This was not exactly the best news for the company, however it was great news for prospective investors. At this point we are now much clearer on where the company is going to get the money to pay its annual dividend. Also instructive was the fact that year-over-year 3Q earnings were higher but below the target analysts. This creates an opportunity to acquire this stock at a discount to the market.
Earnings Source:Thomson Reuters
