NYSE$BRC

Brady Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Brady's financial performance reflected solid results despite a challenging industrial economic environment, with increased income before income taxes and diluted EPS.

Brady Corporation reported a decrease in sales by 2.0 percent, with organic sales declining by 1.2 percent. However, income before income taxes increased by 15.4 percent, and diluted EPS increased by 12.7 percent. The company increased its full year fiscal 2020 EPS guidance to a range of $2.55 to $2.65.

  • Income before income taxes increased 15.4 percent to $42.4 million.
  • Diluted EPS increased 12.7 percent to $0.62.
  • Sales declined 2.0 percent, with organic sales declining 1.2 percent.
  • Full year diluted EPS guidance was increased to $2.55 to $2.65.

Headline financials

Total Revenue

$277M

Previous: $282M-2.0%
EPS (adj)

$0.62

Previous: $0.55+12.7%
Organic Sales Growth

-1.2%

Previous: 2.3%-152.2%
Capital Expenditures

-$13.1M

Previous: -$12.1M-8.0%
Free Cash Flow

$20.5M

Previous: $17.1M+19.6%
Net Income

$33.6M

Previous: $29.2M+14.8%
Operating Income

$41.2M

Previous: $36M+14.5%
Gross Profit

$139M

Previous: $140M-0.5%
Cash & Equivalents

$290M

Previous: $202M+43.3%
Total Assets

$1.22B

Previous: $1.08B+12.2%

Revenue & EPS history

Brady · Revenue · Quarterly

$277M

Q2 2020-2%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The Company is increasing its full year fiscal 2020 earnings per diluted Class A Nonvoting Common Share guidance from its previous range of $2.50 to $2.60 to a range of $2.55 to $2.65.

Tailwinds

  • Organic sales growth of approximately flat to slightly positive
  • Full-year income tax rate of approximately 20 percent
  • Depreciation and amortization of approximately $25 million
  • Continue capturing efficiency gains in its manufacturing facilities
  • Continue capturing efficiency gains in selling, general and administrative expenses

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.1%

Avg return

Earnings day

+1.2%

Avg return

5 days after

-0.4%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+18.2%

Q1 2016

Best reaction

-9.3%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.1%+23.0%+17.6%
Q2 2026-2.0%-2.4%-15.1%
Q1 2026-1.9%+3.8%+8.8%
Q4 2025+6.8%+1.1%+0.5%
Q3 2025-5.7%-8.0%-10.9%
Q2 2025-6.8%-1.9%-5.4%
Q1 2025-6.2%-1.9%-0.6%
Q4 2024+1.2%+1.0%+4.0%
Q3 2024+12.8%+13.1%+9.8%
Q2 2024-7.5%-8.1%-6.3%
Q1 2024+0.4%-1.2%+7.6%
Q4 2023+9.3%+8.9%+9.0%
Q3 2023+2.1%-3.4%-4.5%
Q2 2023+4.1%+5.7%-0.5%
Q1 2023-0.1%+0.1%-5.0%
Q4 2022-2.1%-7.6%-10.3%
Q3 2022+9.0%+5.8%+0.9%
Q2 2022-7.4%-9.1%-7.3%
Q1 2022-6.3%-4.1%-2.0%
Q4 2021-3.2%-4.2%-5.2%
Q3 2021+2.3%+2.0%+0.2%
Q2 2021-1.0%+2.3%+7.0%
Q1 2021-1.0%+0.2%+5.6%
Q4 2020-8.0%-13.9%-9.2%
Q3 2020+5.0%+8.8%+1.4%
Q2 2020-1.1%-2.9%-25.8%
Q1 2020+3.5%+6.5%+4.0%
Q4 2019+7.4%+12.4%+6.5%
Q3 2019+1.4%+2.2%+4.0%
Q2 2019+1.7%+0.8%-4.4%
Q1 2019+2.6%+0.1%-2.0%
Q4 2018+11.8%+6.7%-3.8%
Q3 2018+0.0%+2.1%+2.4%
Q2 2018+1.4%-0.8%-4.1%
Q1 2018+2.1%+3.3%+3.7%
Q4 2017+8.3%+9.8%+16.1%
Q3 2017-0.3%-3.2%-7.9%
Q2 2017-0.8%-3.2%-3.0%
Q1 2017-0.5%+0.7%+2.6%
Q4 2016+5.0%+3.4%+4.6%
Q3 2016+15.9%
Q2 2016+15.4%
Q1 2016+18.2%
Q4 2015-9.3%
Q3 2015-4.0%
Q2 2015-4.7%
Q1 2015+5.2%
Q4 2014-0.2%
Q3 2014+3.2%
Q2 2014-3.4%
Q1 2014+1.2%
Q4 2013+1.0%
Q3 2013+0.7%
Q2 2013+0.6%
Q1 2013+0.4%
Q4 2012+0.4%
Q3 2012+3.6%
Q2 2012+3.2%
Q1 2012-3.1%
Q4 2011-3.6%
Q3 2011-1.8%
Q2 2011+2.6%
Q1 2010+1.7%
Q4 2010-0.3%
Q3 2010-8.6%
Q2 2009+2.8%

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