Why Brady's Shares Dropped
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 Brady Corp. fell as much as 11% today, after releasing earnings.
So what: Fiscal second quarter revenue rose 1.1%, to $324.2 million, but analysts had expected $327.6 million. The bottom line was even worse, where earnings per share of $0.38 fell $0.10 short of estimates.
Now what: Management's comments about next year didn't exactly have investors jumping up and down today. They said there would be continued pressure on sales due to a slow macro economy. Shares trade at 13 times forward estimates and, after this earnings miss, I think that's a steep price for a company barely growing at all.
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The article Why Brady's Shares Dropped originally appeared on Fool.com.
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