Apr 30, 2020

Brady Q3 2020 Earnings Report

Brady's financial performance declined due to the COVID-19 pandemic and non-cash impairment charges.

Key Takeaways

Brady Corporation reported a decrease in sales and income for the third quarter of fiscal year 2020, impacted by the COVID-19 pandemic and non-cash impairment charges. The company withdrew its fiscal year 2020 financial guidance due to the uncertain economic environment.

Income before income taxes decreased by 45.9% to $22.2 million.

Diluted EPS decreased to $0.26, impacted by non-cash impairment charges and a higher income tax rate.

Sales declined by 8.2%, with organic sales decreasing by 6.0% and foreign currency translation impacting sales by 2.2%.

The company returned $64.1 million to shareholders through share repurchases and $11.3 million in dividends.

Total Revenue
$266M
Previous year: $290M
-8.2%
EPS
$0.47
Previous year: $0.65
-27.7%
Organic Sales Growth
-6%
Foreign Currency Impact
-2.2%
Income before income taxes
$22.2M
Cash and Equivalents
$239M

Brady

Brady

Forward Guidance

Due to the uncertainty around the duration and depth of the economic contraction caused by the COVID-19 pandemic, the Company is withdrawing its previously communicated full-year fiscal 2020 financial guidance.