TULSA, Okla., June 03, 2024 (GLOBE NEWSWIRE) -- Today, IXOPAY, announced the appointment of industry veteran Brady Harris as its new CEO. His appointment aligns with the recent merger of IXOPAY and TokenEx, highlighting a significant shift in the payments industry towards a multi-processor payment model, which empowers merchants and fintech companies to improve and diversify their payment strategies. The company thanks departing CEO Marc Olesen for his direction and contributions. Harris, rated a Top 3 nati ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. In order to see if BRC is a promising momen ...

Brady (BRC) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Indivi ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...

MILWAUKEE, May 24, 2024 (GLOBE NEWSWIRE) -- Brady Corporation (NYSE: BRC) ("Brady" or "Company") announced that Christopher Hix will join its Board of Directors, effective May 24, 2024. "Chris' extensive financial and strategic experience as a leader at several industrial companies, where he played a key role in accelerating growth, makes him an outstanding addition to the Brady Board of Directors," said Bradley C. Richardson, Chair of Brady's Board of Directors. Mr. Hix joins the Brady Board of Directors a ...

MILWAUKEE, May 24, 2024 (GLOBE NEWSWIRE) -- Brady Corporation (NYSE: BRC) ("Brady" or "Company") announced that Christopher Hix will join its Board of Directors, effective May 24, 2024. Mr. Hix joins the Brady Board of Directors after a 39-year career in public companies serving a broad range of global markets. From 2016 until his retirement in 2022, he served as Chief Financial Officer of Enovis Corporation (and its predecessor Colfax Corporation) while the company transformed its industrial business portf ...

Financial Data and Key Metrics Changes - The company reported a record high earnings per share (EPS) of $1.05, up 9.4% year-over-year, with non-GAAP EPS increasing 14.7% to $1.09 [14][15] - Organic sales growth was 4.5%, with total sales growth of 1.9% after accounting for foreign currency translation and divestitures [16][18] - Gross profit margin improved to 51.6%, an increase of 130 basis points from the previous year [19] Business Line Data and Key Metrics Changes - The Americas and Asia region saw organic sales growth of 4.5%, while Europe and Australia experienced 4.4% growth [16][34] - Segment profit in the Americas and Asia increased by 1% to $49.7 million, maintaining a profit margin of 22.1% [36] - In Europe, segment profit rose 14.3% from $17.1 million to $19.5 million, driven by strong organic sales growth [37] Market Data and Key Metrics Changes - The company noted a decline in sales in China by over 17%, but growth in other markets like India and Singapore compensated for this drop [49] - The healthcare segment has been a drag on organic growth, with stagnant hospital admissions impacting performance [68][105] Company Strategy and Development Direction - The company is focused on launching innovative products, with several new products introduced this quarter, including a rugged barcode scanner and an industrial inkjet printer [9][52] - There is an ongoing commitment to return funds to shareholders through dividends and share buybacks, with $61.6 million returned this quarter [17][32] - The company is investing in research and development, increasing R&D spending from $15.7 million to $17.7 million [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of the year, despite uncertainties in the economic environment [43][65] - The company expects low single-digit organic sales growth for the full fiscal year 2024, with guidance adjusted for EPS [24][47] - Management highlighted the potential of generative AI to enhance productivity and sales effectiveness [12] Other Important Information - The company has a strong cash position with $96.7 million in net cash and plans for disciplined capital allocation [31][32] - The company has increased its dividend for 38 consecutive years, reflecting a commitment to shareholder returns [23][92] Q&A Session Summary Question: What trends are being seen in industrial automation and healthcare? - Management noted hesitancy in investment in industrial automation due to economic concerns, while the healthcare segment has been stagnant but new products are expected to improve performance [44][68] Question: How did the company achieve organic growth in Europe? - The company attributed growth to increased product consumption rather than pricing, with successful expansion in wallet share among customers [61][107] Question: What surprised management in the quarter? - Management was surprised by the acceleration of product adoption in the last month of the quarter, indicating a shift in customer purchasing behavior [80][88]

Financial Performance - Net sales for the three months ended April 30, 2024 increased 1.9% to $343.4 million compared to $337.1 million in the same period in the prior year, with organic sales growth of 4.5%[97] - Gross margin increased 4.3% to $177.0 million in the three months ended April 30, 2024, with a gross margin percentage of 51.6%, up from 50.3% in the prior year[99] - Operating income for the three months ended April 30, 2024 was $63.5 million, or 18.5% of net sales, compared to $63.0 million, or 18.7% in the prior year[96] - Net income for the three months ended April 30, 2024, was $50.9 million, a 14.8% increase from $48.1 million in the same period last year; for the nine months, net income rose to $141.8 million, up 12.9% from $125.5 million[114] - Operating income increased by 0.9% to $63.5 million for the three months ended April 30, 2024, and by 8.6% to $177.2 million for the nine months ended April 30, 2024, compared to the same periods in the prior year[113] Expenses - Research and development expenses increased 12.5% to $17.7 million in the three months ended April 30, 2024, representing 5.1% of net sales[111] - Selling, general and administrative expenses increased 5.3% to $95.8 million in the three months ended April 30, 2024, with SG&A as a percentage of sales rising to 27.9%[100] Cash and Liquidity - The Company had cash of $160.5 million and total available liquidity of $1,245.0 million as of April 30, 2024[83] - Cash and cash equivalents were $160.5 million as of April 30, 2024, an increase of $8.9 million from July 31, 2023, primarily due to improved profitability and reduced inventory spend[122] - Net cash provided by operating activities was $171.1 million for the nine months ended April 30, 2024, compared to $129.9 million in the same period last year, reflecting improved profitability[122] - The company believes that net cash provided by operating activities will continue to be adequate to meet liquidity and capital needs over the next 12 months and beyond[140] Sales Growth - Organic sales growth for the nine months ended April 30, 2024 was 3.0%, contributing to a net sales increase of 1.2% to $998.0 million[98] - Americas & Asia net sales increased 0.9% to $224.8 million in the three months ended April 30, 2024, with organic sales growth of 4.5%[104] - Organic sales growth in the Americas was 4.5% for the three months and 3.0% for the nine months ended April 30, 2024, driven by strong performance in safety and facility identification product lines[117] - Organic sales in Europe increased by 4.4% for the three months ended April 30, 2024, with strong growth in safety and facility identification product lines, particularly in France and Germany[119] Dividends - The Company declared a quarterly cash dividend of $0.235 per share payable on July 31, 2024[90] Risks and Challenges - The Company expects to continue experiencing inflationary pressures and supply chain disruptions through the end of fiscal 2024, but has been able to mitigate impacts through pricing actions[108] - The company faces risks including increased costs of raw materials, decreased demand for products, and supply chain disruptions[143] - The company must effectively compete and execute its strategy to develop technologically advanced products that meet customer demands[143] - The company is subject to extensive regulations by U.S. and non-U.S. governmental entities, which may impact operations[143] - The company may face litigation risks, including product liability claims[143] - The company is exposed to foreign currency fluctuations and potential write-offs of goodwill and other intangible assets[143] Financial Agreements and Compliance - The outstanding balance on the Company's credit agreement was $63.8 million as of April 30, 2024, with a maximum outstanding amount of $64.7 million during the nine months[127] - The Company maintained a debt to EBITDA ratio of 0.2 to 1.0 and an interest expense coverage ratio of 98.1 to 1.0 as of April 30, 2024, in compliance with financial covenants[128] - The company entered into an amendment to the credit agreement on December 21, 2021, to adjust to alternative benchmarks due to the elimination of LIBOR[141] Internal Controls and Market Risk - There were no changes in the company's internal control over financial reporting that materially affected its financial reporting[155] - There has been no material change in market risk information since the 2023 Form 10-K[154] - There are no significant agreements for the purchase of inventory or other goods or services specifying minimum order quantities[140]

Earnings Guidance - Earnings per diluted Class A Common Share guidance for fiscal year ending July 31, 2024, raised to a new range of $3.93 to $4.00 on a GAAP basis and $4.08 to $4.15 on a non-GAAP basis[2][10]. - Diluted EPS Excluding Certain Items guidance for fiscal 2024 is projected between $4.08 and $4.15[41]. Sales Performance - Sales for the quarter ended April 30, 2024, increased by 1.9% to $343.4 million, with organic sales growth of 4.5%[3]. - For the nine-month period ended April 30, 2024, sales increased by 1.2% to $998.0 million, with organic sales growth of 3.0%[4]. - Total net sales for the quarter ended April 30, 2024, were $343.4 million, a 1.9% increase compared to $337.1 million in the same quarter of the prior year[18]. - Net sales for the three months ended April 30, 2024, were $343,384 million, a slight increase from $337,116 million in the same period of 2023, while net sales for the nine months ended April 30, 2024, reached $997,991 million compared to $985,934 million in 2023[34]. Income and Earnings - Net income for the nine-month period ended April 30, 2024, was $141.8 million, compared to $125.5 million in the same period last year[9]. - Diluted EPS for the nine months ended April 30, 2024, was $2.91, up from $2.51 in the same period last year[9]. - Net income for the quarter was $50.9 million, compared to $48.1 million in the same quarter last year[26]. - Diluted EPS for the quarter increased 9.4% to $1.05, while diluted EPS excluding certain items increased 14.7% to $1.09[24]. - For the nine-month period ended April 30, 2024, income before income taxes increased 11.0% to $179.6 million compared to $161.9 million in the same period last year[27]. - Basic net income per Class A Nonvoting Common Share for the three months ended April 30, 2024, was $1.06, an increase from $0.97 in 2023, and for the nine months, it rose to $2.94 from $2.52[34]. Cash Flow and Shareholder Returns - Net cash provided by operating activities was $171.1 million for the nine months ended April 30, 2024, compared to $129.9 million in the same period last year[6]. - The company repurchased 863,365 shares for $50.4 million and returned $11.2 million to shareholders in dividends during the quarter[10]. Product Development and Innovation - The company launched several new products this quarter, focusing on innovation to drive future growth[5]. - The company is positioned for future success with an increased pace of innovative new product development[5]. Regional Sales Performance - Sales in the Americas & Asia increased by 0.9% and by 3.8% in Europe & Australia for the quarter ended April 30, 2024[3]. - Organic sales growth was 4.5% for the quarter, while foreign currency effects decreased sales by 0.3% and divestitures decreased sales by 2.3%[24]. Financial Position - Total current assets as of April 30, 2024, were $521,272 million, slightly down from $524,820 million as of July 31, 2023[35]. - Total liabilities increased to $401,994 million as of April 30, 2024, from $398,338 million as of July 31, 2023[35]. - Stockholders' equity rose to $1,022,102 million as of April 30, 2024, compared to $990,919 million as of July 31, 2023[35]. Operating Performance - Total segment profit for the quarter was $69.2 million, compared to $66.3 million in the same quarter last year[18]. - Gross margin improved to $177,027 million for the three months ended April 30, 2024, up from $169,691 million in 2023, and for the nine months, it increased to $510,829 million from $481,395 million[34]. - Operating income for the three months ended April 30, 2024, was $63,543 million, slightly higher than $63,001 million in 2023, with a nine-month operating income of $177,199 million compared to $163,168 million in 2023[34]. Research and Development - Research and development expenses increased to $17,681 million for the three months ended April 30, 2024, compared to $15,715 million in 2023, and for the nine months, it was $50,215 million versus $45,025 million in 2023[34].

Core Viewpoint - Brady Corporation reported a 1.9% increase in sales for the third quarter of fiscal 2024, driven by organic sales growth of 4.5%, despite negative impacts from foreign currency translation and divestitures [2][8]. Financial Results - **Quarterly Sales**: Sales for the quarter ended April 30, 2024, were $343.4 million, up from $337.1 million in the same quarter last year [2]. - **Income Before Taxes**: Income before income taxes increased by 2.2% to $64.4 million compared to $63.0 million in the same quarter last year [3]. - **Net Income**: Net income rose to $50.9 million from $48.1 million year-over-year, with diluted earnings per share (EPS) increasing to $1.05 from $0.96 [4][8]. Nine-Month Period Results - **Sales Growth**: For the nine-month period ended April 30, 2024, sales increased by 1.2% to $998.0 million from $985.9 million in the same period last year [5]. - **Income Before Taxes**: Income before income taxes for the nine months increased by 11.0% to $179.6 million compared to $161.9 million in the prior year [6]. - **Net Income**: Net income for the nine-month period was $141.8 million, up from $125.5 million, with diluted EPS rising to $2.91 from $2.51 [7]. Segment Performance - **Regional Sales**: Sales in the Americas & Asia increased by 0.9%, while Europe & Australia saw a 3.8% increase, with organic sales growth of 4.5% and 4.4% respectively [2][25]. - **Segment Profit**: Total segment profit for the quarter was $69.2 million, compared to $66.3 million in the same quarter last year [26]. Cash Flow and Shareholder Returns - **Operating Cash Flow**: Net cash provided by operating activities for the nine months was $171.1 million, compared to $129.9 million in the same period last year [8]. - **Shareholder Returns**: The company repurchased 863,365 shares for $50.4 million and paid $11.2 million in dividends during the quarter [10]. Fiscal 2024 Guidance - **Earnings Guidance**: The company raised its GAAP EPS guidance for the fiscal year ending July 31, 2024, to a range of $3.93 to $4.00, and non-GAAP EPS guidance to $4.08 to $4.15 [11][12].