Jul 31, 2024

Brady Q4 2024 Earnings Report

Reported record EPS and expanded share buyback program

Key Takeaways

Brady Corporation reported a decrease in sales by 0.7 percent, but achieved a record high EPS of $1.15 in Q4 2024. The company's board authorized an additional $100 million for share repurchases and announced its fiscal 2025 EPS guidance.

Diluted EPS increased 15.0 percent to a record high of $1.15.

Gross profit margin increased to 51.6 percent.

Board of Directors authorized an additional $100 million for share repurchase.

Sales decreased 0.7 percent, with organic sales growth of 1.6 percent offset by foreign currency and divestitures.

Total Revenue
$343M
Previous year: $346M
-0.7%
EPS
$1.19
Previous year: $1.04
+14.4%
Organic Sales Growth
1.6%
Previous year: 6.9%
-76.8%
Foreign Currency Impact
-0.8%
Previous year: 0.6%
-233.3%
Income before income taxes
$70.5M
Previous year: $66.2M
+6.5%
Gross Profit
$177M
Previous year: $176M
+0.7%
Cash and Equivalents
$250M
Previous year: $152M
+65.1%
Total Assets
$1.52B
Previous year: $1.39B
+9.1%

Brady

Brady

Forward Guidance

The Company expects GAAP earnings per diluted Class A Nonvoting Common Share to range from $4.15 to $4.45 and Diluted EPS Excluding Certain Items* to range from $4.40 to $4.70 for the year ending July 31, 2024.

Positive Outlook

  • GAAP earnings per diluted Class A Nonvoting Common Share to range from $4.15 to $4.45, which would be an increase of 2.0 percent to 9.3 percent over GAAP earnings per diluted Class A Nonvoting Common Share of $4.07 for the year ended July 31, 2024.
  • Diluted EPS Excluding Certain Items* to range from $4.40 to $4.70 for the year ending July 31, 2024, which would be an increase of 4.3 percent to 11.4 percent over Diluted EPS Excluding Certain Items* of $4.22 for the year ended July 31, 2024.
  • Full-year income tax rate of approximately 20 percent.
  • Depreciation and amortization expense ranging from $38 million to $40 million.
  • Capital expenditures are expected to approximate $35 million.

Challenges Ahead

  • Guidance is based upon foreign currency exchange rates as of July 31, 2024.
  • Guidance assumes continued economic growth.
  • Increased cost of raw materials and labor.
  • Material shortages and supply chain disruptions.
  • Decreased demand for our products.