The marine/leisure company provided a softer than expected quarterly update overnight, although they increased their share buy-back which helped to support the stock. For the 4Q, they reported adjusted EPS of $1.45 vs consensus of $1.65 on net sales of $1.36bn, a 5% miss at the top line. Looking forward, they guided to 1Q24 net sales of $1.3-1.4bn which is below consensus of $1.64bn while their FY24 guidance was also a touch soft.
Higher costs are filtering into a softer backdrop for sales which is hurting earnings, and we expect this theme to continue. The board has increased the size of the share buyback, and they now have $500m to spend, which helped.
- We are comfortable having exited BC this week from the International Equities Portfolio
MM is now neutral BC
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