NYSE$BRC

Brady Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Brady reported record EPS and strong organic sales growth, driven by ongoing investment in research and development.

Brady Corporation reported a 1.9% increase in sales, driven by a 4.5% organic sales growth. Diluted EPS increased 9.4% to a record high of $1.05. The company raised its full-year EPS guidance.

  • Sales increased by 1.9 percent, with organic sales up by 4.5 percent.
  • Diluted EPS reached a record high of $1.05, a 9.4 percent increase.
  • The company repurchased 863,365 shares for $50.4 million and returned $11.2 million to shareholders in dividends.
  • Full-year EPS guidance was raised to a range of $3.93 to $4.00 on a GAAP basis and $4.08 to $4.15 on a non-GAAP basis.

Headline financials

Total Revenue

$343M

Previous: $337M+1.9%
EPS

$1.05

Previous: $0.95+10.5%
Capital Expenditures

-$69.2M

Previous: -$12.9M-435.6%
Free Cash Flow

-$18.3M

Previous: $35.1M-152.0%
Net Income

$50.9M

Previous: $48.1M+5.9%
Operating Income

$63.5M

Previous: $63M+0.9%
Gross Profit

$177M

Previous: $170M+4.3%
Cash & Equivalents

$160M

Previous: $135M+18.8%
Total Assets

$1.42B

Previous: $1.38B+3.4%
R&D Expense

$17.7M

No prior period

Revenue & EPS history

Brady · Revenue · Quarterly

$343M

Q3 2024+1.9%vs Q3 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The Company raised its GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2024 from the previous guidance range of $3.80 to $3.95 per share to the new full year guidance range of $3.93 to $4.00 per share. The Company raised its Diluted EPS Excluding Certain Items* guidance for the year ending July 31, 2024 from the previous range of $3.95 to $4.10 per share to the new full year guidance range of $4.08 to $4.15 per share.

Tailwinds

  • Full-year GAAP EPS guidance raised to $3.93 - $4.00.
  • Full-year non-GAAP EPS guidance raised to $4.08 - $4.15.
  • Fiscal 2024 guidance assumes continued economic growth.
  • Full-year income tax rate of approximately 21 percent.
  • Depreciation and amortization expense ranging from $30 million to $32 million.

Headwinds

  • Fiscal 2024 guidance is based on foreign currency exchange rates as of April 30, 2024.
  • Fiscal 2024 guidance does not include the Company’s pending acquisition of Gravotech Holding.
  • Capital expenditures are expected to approximate $75 million, which is inclusive of facility purchase and construction costs of approximately $55 million.
  • Increased cost of raw materials and labor as well as material shortages and supply chain disruptions
  • The risk that the proposed offer and its announcement could have an adverse effect on the ability of Brady and Gravotech to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally

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 Q3 2024

Historical avgQ3 2024

+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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