Analyst: Improved engine sales key to Brunswick rebound
DENVER — Improved engine segment sales provided a big boost to Brunswick in the most recent quarter and gross margin was the primary lever of growth, according to RBC Capital Markets analyst Edward Aaron. In addition, he said Q1 was no fluke and significantly raised his estimates for this year and next.
“While flow-through obviously cannot continue at the near 100% rate experienced in Q1, we expect Brunswick to maintain very strong margin trends for the foreseeable future,” Aaron said. “Prospects for Q2 look bright. In addition to good momentum in engines, the boat segment should benefit from higher production, a more favorable mix and reduced discounting.”
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