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Apr 30, 2023
Brady Q3 2023 Earnings Report
Brady's Q3 2023 earnings were released, featuring record EPS and adjusted full-year EPS guidance.
Key Takeaways
Brady Corporation reported a decrease in sales by 0.4 percent, but a record diluted EPS of $0.96 for the third quarter of fiscal year 2023. The company has reorganized into two geographic segments: Americas & Asia and Europe & Australia. The company also raised the low end of its full-year EPS guidance.
Sales decreased 0.4 percent compared to the same quarter of the prior year, with organic sales increasing 1.9 percent.
Diluted EPS increased 23.1 percent to a record high of $0.96 in the third quarter of fiscal 2023.
Net cash provided by operating activities increased 77.2 percent to $72.5 million.
Full year EPS guidance was adjusted from $3.23-$3.43 to $3.32-$3.47 on a GAAP basis, and from $3.40-$3.60 to $3.45-$3.60 on a non-GAAP basis.
Brady
Brady
Forward Guidance
The Company adjusted its GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2023 from the previous guidance range of $3.23 to $3.43 per share to the new full year guidance range of $3.32 to $3.47 per share. The Company raised the low end of its Diluted EPS Excluding Certain Items* guidance for the year ending July 31, 2023 from the previous range of $3.40 to $3.60 per share to the new full year guidance range of $3.45 to $3.60 per share.
Positive Outlook
- Full-year GAAP EPS guidance increased to a range of $3.32 to $3.47.
- Low end of full-year non-GAAP EPS guidance raised to $3.45-$3.60.
- Assumes a full-year income tax rate of approximately 21 percent.
- Depreciation and amortization expense ranging from $32 million to $34 million.
- Capital expenditures of approximately $20 million.
Challenges Ahead
- Guidance is based on foreign currency exchange rates as of April 30, 2023.
- Guidance assumes continued economic growth.
- Increased cost of raw materials, labor and freight as well as material shortages and supply chain disruptions
- Decreased demand for our products
- Our ability to compete effectively or to successfully execute our strategy