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Jul 31, 2021
Brady Q4 2021 Earnings Report
Brady's Q4 2021 financial results were reported, showcasing significant sales growth and strong EPS performance.
Key Takeaways
Brady Corporation reported a strong fourth quarter in fiscal year 2021, with a 21.6% increase in sales and diluted EPS of $0.53. The company's investments in sales, marketing, and R&D, combined with improved market conditions, contributed to double-digit organic sales growth. Brady also completed three acquisitions and maintained a strong balance sheet.
Sales increased by 21.6 percent, driven by organic growth, acquisitions, and foreign currency translation.
Organic sales grew by 12.6 percent.
Diluted EPS was $0.53, while diluted EPS excluding certain items increased 32.1 percent to $0.70.
Net cash provided by operating activities was $50.8 million.
Forward Guidance
Brady expects earnings per diluted Class A Nonvoting Common Share, excluding after-tax amortization expense to range from $3.12 to $3.32 for the year ending July 31, 2022. Brady also expects GAAP earnings per diluted Class A Nonvoting Common Share to range from $2.90 to $3.10, which would be an increase of 17.4 percent to 25.5 percent over the GAAP earnings per diluted Class A Nonvoting Common Share of $2.47 for the year ended July 31, 2021.
Positive Outlook
- Earnings per share, excluding after-tax amortization expense, are expected to range from $3.12 to $3.32.
- GAAP earnings per share are expected to range from $2.90 to $3.10.
- The GAAP EPS guidance range represents an increase of 17.4% to 25.5% compared to the previous year.
- Sales growth in excess of 12 percent is expected for the year ending July 31, 2022.
- Guidance is based on a continued economic recovery.
Challenges Ahead
- Guidance includes an $8.1 million increase in amortization expense.
- The increased amortization expense equates to an after-tax year-over-year increase of approximately $0.12 per share.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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