NYSE$BRC

Brady Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Brady's Q4 2020 results reflected a decrease in sales and earnings per share compared to the same quarter last year, but the Workplace Safety business showed strong organic sales growth.

Brady Corporation reported a 14.7% decrease in sales and a decline in diluted EPS from $0.68 to $0.53 compared to the same quarter last year. While Identification Solutions experienced a sales decline, the Workplace Safety business grew, driven by COVID-19 related products. The company remains financially strong with significant cash reserves and no outstanding debt.

  • Sales declined by 14.7% due to a decrease in organic sales and foreign currency translation impact.
  • Diluted EPS decreased to $0.53 compared to $0.68 in the same quarter last year.
  • Identification Solutions sales declined by 22.8%, while Workplace Safety sales increased by 9.7%.
  • The Workplace Safety business experienced organic sales growth of 10.8%, driven by COVID-19 related products.

Headline financials

Total Revenue

$252M

Previous: $295M-14.7%
EPS (adj)

$0.53

Previous: $0.68-22.1%
Organic Sales Growth

-13.7%

Previous: 1.7%-905.9%
Net Income

$27.7M

No prior period
Operating Income

$33.2M

No prior period
Cash & Equivalents

$218M

No prior period

Revenue & EPS history

Brady · Revenue · Quarterly

$252M

Q4 2020-14.7%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The company did not provide specific forward guidance in this report. However, they indicated that they remain focused on investing in new products, building on positive momentum, and executing sustainable efficiencies throughout Brady.

Tailwinds

  • Continued investment in new product development.
  • Positive momentum in the Workplace Safety business.
  • Improving sequential sales trends in the Identification Solutions business.
  • Strong financial position with significant cash reserves.
  • Focus on sustainable efficiencies throughout Brady.

Headwinds

  • Uncertainties related to the COVID-19 pandemic.
  • Decreased demand for products in some areas.
  • Raw material and other cost increases.
  • Difficulties in protecting websites, networks, and systems against security breaches.
  • Risks associated with foreign currency fluctuations.

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 Q4 2020

Historical avgQ4 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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