Brunswick reported third-quarter earnings of $1.58 a share, $0.18 above expectations

For the full year, Brunswick now expects net sales of $5.7 billion to $5.8 billion.

Brunswick reported third-quarter earnings of $1.58 a share, $0.18 above expectations. Revenue came in at $1.45 billion, below the $1.50 billion expected. The quarter's strength was in profit, not sales.

Brunswick raised its full-year outlook. It now expects net sales of $5.7 billion to $5.8 billion and adjusted diluted earnings per share of approximately $4.65. It expects an adjusted operating margin, a measure of profit from operations as a share of sales, of approximately 8.0 per cent. Free cash flow, the cash left after spending on equipment and other investment, is expected to be $400 million or more. The company also expects to repay at least $160 million of debt and to buy back at least $80 million of its own shares.

Chairman and CEO David Foulkes said the quarter showed Brunswick's performance moving apart from overall U.S. boat market trends. He pointed to healthy boating participation and low pipeline inventory, meaning few unsold products held in the sales channel, as the reasons.

The raised outlook matters more for the rest of the year than the quarter does. Foulkes's explanation is the claim to test in coming quarters. If Brunswick's results keep moving apart from the industry, they will depend on the company's own drivers rather than on the direction of the market.