Brunswick shares drop after S&P cuts stock
Shares of Brunswick Corp. (NYSE: BC), parent of Life Fitness, dropped after a Standard & Poor analyst cut his rating on the company, saying the pace of the company’s recovery will be slower than expected.
Standard & Poor’s analyst Erik Kolb downgraded Brunswick stock to “hold” from “buy” in a note to investors on Oct. 6.
“We believe the pace of Brunswick’s recovery will be a notch lower than we previously expected, as consumers remain concerned about high unemployment and other macro trends,” Kolb wrote in the client note.
Brunswick has spent years cutting costs and closing factories as the recession hurt its business. Consumers are often cautious about buying big-ticket items like boats -- its core market -- during a weak economy, particularly when credit markets are tight. But the company signaled a recovery in July, saying it swung to a profit in the second quarter.
Shares of Brunswick fell $0.42, or 2.6 percent, to $15.59 in afternoon trading on Oct. 6. It closed at $15.66. The stock has traded between $9.31 and $22.89 in the past 52 weeks.
Costco’s Q4 net income rises
Costco (Nasdaq: COST) said its fourth-quarter net income rose nearly 16 percent on increased revenue from membership fees and international operations.
It said purchases of small extras, including sporting goods, continued to grow modestly.
For the period that ended Aug. 29, it earned $432 million, or $0.97 per share, up from $374 million, or $0.85 per share, in the same quarter last year.
Revenue rose 8 percent to $24.13 billion.
While revenue from sales at clubs open at least a year climbed 6 percent overall, that same figure jumped 14 percent for international sales. Excluding the impact of gasoline and foreign exchange, the figure rose 4 overall and 10 percent internationally.
Costco also reported same-store sales rose 5 percent for the month of September.
--Compiled by Wendy Geister
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