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.
Can your retirement portfolio provide you with enough income to last? You'll need more than Brady. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Brady to My Watchlist.
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 of Motley 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.