Brady Shares Jumped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of safety and security specialist Brady (NYS: BRC) were showing the all-clear sign to investors today, as they rose as much as 14% in intraday trading before settling down to a more moderate gain.

So what: When it comes to earnings season, absolute performance almost always takes a back seat to whether a company was able to top Wall Street's expectations. In Brady's case, that box was checked, and investors are obviously pumped about it.

For the quarter, revenue was up 6% from a year ago to $349.5 million, while adjusted net income rose 13.2% and earnings per share finished at $0.62. Analysts were looking for $0.59 in per-share profit on $338 million in sales.

Now what: Like virtually every other business out there, Brady's future results will hinge to a large extent on whether the economy can continue to chug forward. However, a steady approach to its business, solid management, and sensible capital allocation will be big boons to investors either way. And on that latter point, it's easy to love a management team that talks like this:

We are committed to putting our cash to work through a balanced approach of investing in organic growth opportunities, strategic acquisitions, and returning dividends to our shareholders and buying back Brady stock from time to time.

Want to keep up to date on Brady?Add it to your watchlist.

At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributorMatt Koppenhefferhas no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter,@KoppTheFool, or onFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.

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