Why Brady's Shares Dropped

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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 Brady Corp. (NYSE: BRC ) 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.

Interested in more info on Brady? Add it to your watchlist by clicking here.

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Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned. 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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