Brady Q4 Sales Tops Consensus; Adds To Buyback Plan

Brady Corp BRC reported fourth-quarter FY21 sales growth of 21.6% year-over-year to $306.13 million, beating the consensus of $300.46 million. Organic sales increased by 12.6%.
Sales by segments: ID Solutions $231.02 million (+34.9% Y/Y) and Workplace Safety $75.11 million (-6.7% Y/Y).
Adjusted EPS improved to $0.70 from $0.53 in 4Q20, in line with the consensus of $0.70.
The gross margin expanded by 116 bps to 48.2%.
The operating income increased by 22.8% Y/Y to $40.8 million, and the margin expanded by 13 bps to 13.3%.
Brady generated cash from operating activities for the entire year of $205.66 million, compared to $140.98 million a year ago.
Brady increased its share buyback program, bringing the authorization for repurchase up to a total of two million shares.
On August 31, 2021, Brady's Board approved an increase in the annual dividend on Class A Common Stock from $0.88 to $0.90 per share.
The company's quarterly dividend of $0.225 per share will be paid on October 29, 2021, to shareholders of record on October 8, 2021.
FY22 Outlook: Brady expects EPS excluding after-tax amortization expense of $3.12 - $3.32 vs consensus of $3.14.
GAAP EPS of $2.90 to $3.10, an increase of 17.4% - 25.5% year-over-year.
Brady expects sales growth over 12% Y/Y.
Price Action: BRC shares are trading higher by 0.49% at $53.74 on the last check Thursday.

Momentum74.47

Growth57.07

Quality40.45

Value52.92

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