Brady Goes Red
Brady (NYS: BRC) reported earnings on March 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 31 (Q2), Brady missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped to a loss.
Gross margins shrank, operating margins expanded, and net margins dropped.
Brady chalked up revenue of $320.6 million. The seven analysts polled by S&P Capital IQ predicted a top line of $331.6 million on the same basis. GAAP reported sales were 2.6% lower than the prior-year quarter's $329.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.49. The seven earnings estimates compiled by S&P Capital IQ averaged $0.49 per share on the same basis. GAAP EPS were -$1.72 for Q2 against $0.46 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.8%, 50 basis points worse than the prior-year quarter. Operating margin was 12.0%, 10 basis points better than the prior-year quarter. Net margin was -28.1%, 3,550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $341.9 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is $2.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 89 members out of 95 rating the stock outperform, and six members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Brady a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brady is hold, with an average price target of $35.20.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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