On September 6, 2024, Brady Corp (BRC, Financial) released its 8-K filing detailing its financial results for the fourth quarter of fiscal 2024, which ended on July 31, 2024. Brady Corp, a global leader in identification solutions and workplace safety products, reported a record diluted EPS of $1.15, surpassing the analyst estimate of $1.08. However, the company reported quarterly revenue of $343.4 million, slightly below the estimated $351.64 million.
Company Overview
Brady Corp provides identification solutions and workplace safety products. The company offers a range of products including safety signs, labeling systems, material identification systems, wire identification, patient identification, and people identification. Brady also provides workplace safety and compliance products such as safety and compliance signs, asset tracking labels, and first-aid products. The largest end market for Brady Corp is the United States.
Performance and Challenges
For the quarter ended July 31, 2024, Brady Corp reported a 0.7% decrease in sales compared to the same quarter last year. This decrease consisted of 1.6% organic sales growth, a 0.8% decrease from foreign currency translation, and a 1.5% decrease from divestitures. By region, sales increased 0.4% in the Americas & Asia but decreased 3.0% in Europe & Australia. The company faces challenges from foreign currency fluctuations and divestitures, which have impacted its overall sales performance.
Financial Achievements
Despite the slight decline in sales, Brady Corp achieved several financial milestones. The company reported a gross profit margin increase to 51.6% in Q4 2024, up from 50.8% in the same quarter last year. Net cash provided by operating activities reached a record high of $255.1 million for fiscal 2024, compared to $209.1 million in fiscal 2023. Additionally, Brady's Board of Directors authorized an additional $100 million for share repurchases, equating to approximately 1.5 million shares.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 |
|---|---|---|
| Net Sales | $343.4 million | $345.9 million |
| Gross Margin | $177.1 million | $175.9 million |
| Operating Income | $66.2 million | $62.0 million |
| Net Income | $55.5 million | $49.4 million |
| Diluted EPS | $1.15 | $1.00 |
Balance Sheet and Cash Flow
Brady Corp's balance sheet remains robust with cash and cash equivalents of $250.1 million as of July 31, 2024, compared to $151.5 million a year earlier. The company's total assets increased to $1.52 billion from $1.39 billion. Net cash provided by operating activities for the year ended July 31, 2024, was $255.1 million, up from $209.1 million in the previous year.
Commentary
"This quarter, we once again reported record-high EPS, marking Brady’s best earnings year ever. For the full year ended July 31, 2024, our GAAP EPS was $4.07, representing a 16.0 percent increase over the previous year’s record," said Brady’s President and CEO, Russell R. Shaller.
Fiscal 2025 Guidance
Brady Corp provided its fiscal 2025 guidance, expecting GAAP earnings per diluted share to range from $4.15 to $4.45, and non-GAAP diluted EPS to range from $4.40 to $4.70. This guidance reflects an anticipated increase of 2.0% to 9.3% over the GAAP EPS of $4.07 for the year ended July 31, 2024.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Brady Corp for further details.
