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Apr 30, 2024
Brady Q3 2024 Earnings Report
Brady reported record EPS and strong organic sales growth, driven by ongoing investment in research and development.
Key Takeaways
Brady Corporation reported a 1.9% increase in sales, driven by a 4.5% organic sales growth. Diluted EPS increased 9.4% to a record high of $1.05. The company raised its full-year EPS guidance.
Sales increased by 1.9 percent, with organic sales up by 4.5 percent.
Diluted EPS reached a record high of $1.05, a 9.4 percent increase.
The company repurchased 863,365 shares for $50.4 million and returned $11.2 million to shareholders in dividends.
Full-year EPS guidance was raised to a range of $3.93 to $4.00 on a GAAP basis and $4.08 to $4.15 on a non-GAAP basis.
Brady
Brady
Brady Revenue by Geographic Location
Revenue by Geographic Location
Americas & Asia Revenue
CapyFin.comEurope & Australia Revenue
CapyFin.com Forward Guidance
The Company raised its GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2024 from the previous guidance range of $3.80 to $3.95 per share to the new full year guidance range of $3.93 to $4.00 per share. The Company raised its Diluted EPS Excluding Certain Items* guidance for the year ending July 31, 2024 from the previous range of $3.95 to $4.10 per share to the new full year guidance range of $4.08 to $4.15 per share.
Positive Outlook
- Full-year GAAP EPS guidance raised to $3.93 - $4.00.
- Full-year non-GAAP EPS guidance raised to $4.08 - $4.15.
- Fiscal 2024 guidance assumes continued economic growth.
- Full-year income tax rate of approximately 21 percent.
- Depreciation and amortization expense ranging from $30 million to $32 million.
Challenges Ahead
- Fiscal 2024 guidance is based on foreign currency exchange rates as of April 30, 2024.
- Fiscal 2024 guidance does not include the Company’s pending acquisition of Gravotech Holding.
- Capital expenditures are expected to approximate $75 million, which is inclusive of facility purchase and construction costs of approximately $55 million.
- Increased cost of raw materials and labor as well as material shortages and supply chain disruptions
- The risk that the proposed offer and its announcement could have an adverse effect on the ability of Brady and Gravotech to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally
Revenue & Expenses
Visualization of income flow from segment revenue to net income