Jan 31, 2020

Brady Q2 2020 Earnings Report

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

Key Takeaways

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.

Total Revenue
$277M
Previous year: $282M
-2.0%
EPS
$0.62
Previous year: $0.55
+12.7%
Organic Sales Growth
-1.2%
Previous year: 2.3%
-152.2%
Foreign Currency Impact
-0.8%
Income before income taxes
$42.4M
Previous year: $36.7M
+15.4%
Cash and Equivalents
$290M

Brady

Brady

Brady Revenue by Segment

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.

Positive Outlook

  • 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