Why Brady Shares Are Seeing Blue Skies Today?

Brady Corp BRC shares are trading higher by around 11% after it reported Q4 FY23 results and boosted share repurchases and quarterly dividend.

The company reported sales growth of 6.8% Y/Y to $345.93 million, beating the consensus of $329.19 million. 

By region, sales rose 4.4% Y/Y in the Americas & Asia and 11.5% Y/Y in Europe & Australia.

Organic sales increased 6.9% Y/Y in the quarter. Gross margin increased to 50.8% from 50.4% a year ago.

Adjusted EPS of $1.04 beat the consensus of $0.90. 

Repurchase: In Q4, the company returned $56.4 million and $120.4 million, respectively, in the form of dividends and share repurchases to the shareholders. 

On August 30, 2023, the Board of Directors authorized an additional share buyback worth $100 million.

Dividend: The company's Board of Directors approved an increase in the annual dividend to shareholders from $0.92 to $0.94 per share, representing a 2.2% increase.

A quarterly dividend of $0.235 per share will be paid on October 31, 2023, to shareholders of record at the close of business on October 10, 2023. 

FY24 Outlook: The company expects adjusted EPS of $3.85-$4.10 vs. $3.84 estimate.

Price Action: BRC shares are up 11.16% at $56.47 premarket on the last check Tuesday.