What’s Brunswick Corporation (NYSE: BC) Paying In Dividends?


Brunswick Corporation (NYSE: BC) is preparing to share some of its recent gains with shareholders in a dividends distribution model. The company’s board recently approved a regularly quarterly dividend of $0.15 per share. The dividend will be paid out on Jun 15, but only to shareholders of record on May 24.

The latest quarterly dividend payout comes after Brunswick recently sweetened quarterly dividend by 20%. Brunswick’s move to sweeten dividend further demonstrated management’s commitment to return value to shareholders as the situation allows.

A mixed quarter for Brunswick Corporation (NYSE: BC)

Brunswick Corporation (NYSE: BC) reported a mixed 1Q2016 in which earnings met expectations but revenue fell short of the estimates. Adjusted EPS of $0.71 was in-line with the consensus target. However, revenue of $1.07 billion was shy of the consensus estimate by $10 million, but rose 8.6% from the corresponding quarter a year ago.

What about full-year 2016? Brunswick is hoping for full-year 2016 EPS to come in the band of $3.40 to $3.50.

Acquisition and its impact

Brunswick Corporation (NYSE:BC) kicked off 2016 with the acquisition of Cyber International Inc., a provider of commercial fitness gears. It forked out $195 million for the acquisition and added the asset to its Life Fitness unit.

The acquisition of Cybex helped Brunswick to expand its portfolio of cardiovascular and strength fitness products and also brought in more customers. But the most important impact of the acquisition is on the bottom-line.

According to Brunswick Corporation (NYSE: BC), the acquisition of Cybex will boost its 2016 EPS by $0.08 and it is the reason the company is projecting 2016 EPS in the range of $3.35 to $3.50. By the third anniversary of the transaction, Brunswick expects it to list EPS by $0.20. It is for that reason that Brunswick is projecting 2018 EPS in the range of $4.55 to $4.95.

Cybex generated sales of about $169 million in 2015. Those numbers will now flow to Brunswick Corporation (NYSE: BC).


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