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Brady
🇺🇸 NYSE:BRC
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Jul 31, 2022

Brady Q4 2022 Earnings Report

Brady reported record EPS in its fiscal 2022 fourth quarter.

Key Takeaways

Brady Corporation reported a 5.8% increase in sales for the quarter ended July 31, 2022, with organic sales increasing by 9.0%. Diluted EPS increased 52.8% to $0.81, an all-time high. The company announced its fiscal 2023 EPS guidance with a range of $3.13 to $3.43 on a GAAP basis.

Sales for the quarter increased 5.8 percent, with organic sales up 9.0 percent.

Gross profit margin increased to 50.4 percent compared to 48.2 percent in the same quarter of the prior year.

Diluted EPS increased 52.8 percent to $0.81, an all-time high.

The company returned $35.5 million to shareholders through dividends and share repurchases during the quarter.

Total Revenue
$324M
Previous year: $306M
+5.8%
EPS
$0.87
Previous year: $0.7
+24.3%
Organic Sales Growth
9%
Previous year: 12.6%
-28.6%
Foreign Currency Impact
-5.7%
Previous year: 4.3%
-232.6%
Income before income taxes
$57.7M
Previous year: $45.4M
+27.1%
Gross Profit
$163M
Cash and Equivalents
$114M
Total Assets
$1.37B

Brady

Brady

Forward Guidance

Brady expects GAAP earnings per diluted Class A Nonvoting Common Share to range from $3.13 to $3.43, and Diluted EPS Excluding Certain Items* to range from $3.30 to $3.60 for the year ending July 31, 2023.

Positive Outlook

  • GAAP earnings per diluted Class A Nonvoting Common Share to range from $3.13 to $3.43, which would be an increase of 7.9 percent to 18.3 percent over the GAAP earnings per diluted Class A nonvoting Common Share of $2.90 for the year ended July 31, 2022.
  • Diluted EPS Excluding Certain Items* to range from $3.30 to $3.60 for the year ending July 31, 2023, which would be an increase of 4.8 percent to 14.3 percent over Diluted EPS Excluding Certain Items* of $3.15 for the year ended July 31, 2022.
  • Full-year income tax rate of approximately 20 percent.
  • Depreciation and amortization expense ranging from $32 million to $34 million.
  • Capital expenditures are expected to approximate $32 million, which is inclusive of facility construction costs of approximately $10 million.

Challenges Ahead

  • Excluded from this Diluted EPS Excluding Certain Items* guidance is expected amortization expense equating to $0.17 per share for the year ending July 31, 2023.
  • Guidance is based on foreign currency exchange rates as of July 31, 2022.
  • Guidance assumes continued economic growth.
  • Increased cost of raw materials, labor and freight as well as material shortages and supply chain disruptions
  • Adverse impacts of the novel coronavirus (“COVID-19”) pandemic or other pandemics

Company Overview

Full financial data and analysis

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