Apr 30, 2021

Brady Q3 2021 Earnings Report

Brady's financial performance significantly improved, driven by organic sales growth and strategic investments.

Key Takeaways

Brady Corporation reported strong Q3 2021 results, with sales up 11.1% and diluted EPS reaching a record $0.71. The company benefited from organic sales growth and foreign currency translation, and increased its full-year EPS guidance.

Pre-tax income more than doubled compared to the same quarter of the prior year.

Diluted EPS increased significantly compared to the same quarter of the prior year.

Sales increased by 11.1% due to organic growth and foreign currency translation.

Net cash from operating activities increased compared to the prior year.

Total Revenue
$296M
Previous year: $266M
+11.1%
EPS
$0.71
Previous year: $0.47
+51.1%
Organic Sales Growth
6.5%
Previous year: -6%
-208.3%
Foreign Currency Impact
4.6%
Previous year: -2.2%
-309.1%
Income before income taxes
$47.8M
Previous year: $22.2M
+115.8%
Cash and Equivalents
$322M
Previous year: $239M
+34.7%

Brady

Brady

Brady Revenue by Segment

Forward Guidance

Brady increased its full year fiscal 2021 earnings per diluted Class A Nonvoting Common Share guidance from its previous range of $2.48 to $2.58 to a range of $2.58 to $2.68. The Company also expects organic sales growth to be in the low-teen percentages in the fourth quarter of fiscal 2021 when compared to the fourth quarter of the prior year.

Positive Outlook

  • Increased full year EPS guidance to a range of $2.58 to $2.68.
  • Expects organic sales growth to be in the low-teen percentages in the fourth quarter of fiscal 2021.
  • Anticipates diluted earnings per share in the range of $0.64 to $0.74 in the fourth quarter of the fiscal year ending July 31, 2021.
  • Expects an approximate increase of 20 percent to 40 percent over the fourth quarter of fiscal 2020.
  • Guidance is based on foreign currency exchange rates as of April 30, 2021 and assumes a continued economic recovery.