Shrinking Sears cuts Briggs’ outlook

Article Excerpt

BRIGGS & STRATTON CORP. $13 (New York symbol BGG; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 42.1 million; Market cap: $547.3 million; Price-to-sales ratio: 0.3; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.briggsandstratton.com) makes lawn-mower engines, portable power generators, pressure washers, and snowblowers and throwers. For the fiscal 2019 second quarter, ended December 31, 2018, sales rose 13.2%, to $505.5 million from $446.4 million a year earlier. However, earnings per share declined 20.0%, to $0.20 from $0.25. That’s largely due to higher sales of less-profitable products. Briggs expects ongoing problems at Sears, and store closures, to cut $30 million from its 2019 sales and $0.15 a share from its earnings. Briggs & Stratton is still a hold. hold…