Brady Earnings: Here’s Why the Stock is Falling Now

Brady Corp. (NYSE:BRC) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 6.58%.

Brady Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 22.45% to $0.38 in the quarter versus EPS of $0.49 in the year-earlier quarter.

Revenue: Rose 1.13% to $324.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Brady Corp. reported adjusted EPS income of $0.38 per share. By that measure, the company missed the mean analyst estimate of $0.48. It beat the average revenue estimate of $323.75 million.

Quoting Management: “We anticipate continuing pressure on organic sales for the remainder of fiscal 2013 as the global macro-economy remains sluggish,” said Brady’s Chief Financial Officer, Thomas J. Felmer. “Based on what we see for the remainder of the year, and including $0.05 to $0.07 of anticipated earnings from PDC as well as some savings from restructuring activities in the fourth quarter, we expect earnings per diluted Class A Common Share to be towards the lower end of our prior guidance of between $2.20 and $2.40, exclusive of non-routine items, restructuring charges, and other items, for our full-year fiscal 2013, with the fourth quarter being stronger than the third quarter. This is based on exchange rates as of January 31, 2013 and a full-year income tax rate, excluding the impact of non-routine items, in the mid-to-upper 20 percent range.”

Key Stats (on next page)…