Safety products maker Brady's Q1 sales beat estimates

Overview

• Brady fiscal Q1 sales rise 7.5%, beating analyst expectations

• Adjusted EPS for fiscal Q1 beats analyst expectations, rising 8% yr/yr

• Company raises low end of full-year adjusted EPS guidance

Outlook

• Brady raises low end of fiscal 2026 Adjusted Diluted EPS guidance to $4.90-$5.15

• Brady updates fiscal 2026 GAAP EPS guidance to $4.57-$4.82 due to amortization

• Fiscal 2026 guidance assumes 21% tax rate and $40 mln capital expenditures

Result Drivers

• ORGANIC SALES GROWTH - Brady attributes Q1 sales increase to organic growth, particularly in the Americas & Asia region

• ACQUISITIONS - Acquisition of Mecco boosts sales, complements previous acquisition of Gravotech

• FOREIGN CURRENCY IMPACT - Foreign currency translation contributed 1.5% to sales growth

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support supplies peer group is "buy."

• Wall Street's median 12-month price target for Brady Corp is $95.00, about 21.2% above its November 14 closing price of $74.88

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX4qnY9G

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