The 10-second takeaway
For the quarter ended April 30 (Q3), Brady missed estimates on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped.
Gross margin shrank, operating margin increased, and net margin contracted.
Brady logged revenue of $331.6 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $342.1 million on the same basis. GAAP reported sales were 1.9% lower than the prior-year quarter's $337.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.57. The seven earnings estimates compiled by S&P Capital IQ averaged $0.57 per share. GAAP EPS of $0.52 for Q3 were 3.7% lower than the prior-year quarter's $0.54 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.3%, 130 basis points worse than the prior-year quarter. Operating margin was 13.4%, 90 basis points better than the prior-year quarter. Net margin was 8.3%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $335.8 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $1.34 billion. The average EPS estimate is $2.24.
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 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 21 give Brady a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brady is hold, with an average price target of $35.40.
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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.