metamorworks Thesis Brady Corporation (NYSE:BRC), a leader in identification solutions and workplace safety, continues its steady growth trajectory despite mixed Q4 2024 financial results. On Type: | Non-GAAP ● EPS Estimate ● EPS Actual Period: | Quarterly T y 1.25 FQ4 2024 EPS Estimate: 1.11 EPS Actual: 1.19 1.00 0.75 0.50 0.25 0.00 FQ4 2023 FQ1 2024 FQ2 2024 FQ3 2024 FQ4 2024 FQ1 2025 (E) FQ2 2026 (E) Seeking Alpha But revenue came in short at $343.4 million, missing by $8.34 million. Seeking Alpha The fo ...

Financial Data and Key Metrics Changes - The company achieved a record high non-GAAP EPS of $4.22 and a GAAP EPS of $4.07 for fiscal 2024, marking three consecutive years of record highs [4][14] - Organic sales growth for the year was 2.6%, with a gross profit margin improvement to 51.3% from 49.4% last year [4][14] - Operating cash flow increased from $79.3 million in Q4 of last year to $84 million this quarter, with free cash flow at $73.2 million [10][12] Business Line Data and Key Metrics Changes - The Americas and Asia region saw organic sales growth of 3.4% and increased segment profit by 6.7% [7][16] - The Europe and Australia region experienced a decline in organic sales of 1.8%, marking the first decline in 13 quarters, but still managed to grow segment profit by 4.6% [7][17] Market Data and Key Metrics Changes - The strengthening of the U.S. dollar negatively impacted sales by 0.8%, while divestitures decreased sales by 1.5%, resulting in a total sales decline of 0.7% for the quarter [8] - The macroeconomic environment in Europe has become more challenging, affecting organic sales growth [7][17] Company Strategy and Development Direction - The company aims to generate top-line growth exceeding GDP and target niche opportunities, particularly in workplace automation [5] - Investments in R&D have increased, with a focus on expanding the portfolio of engineered products and enhancing digital capabilities [4][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite a slow GDP growth outlook, citing strong product launches and customer engagement [21][24] - The company anticipates organic sales growth in the low-single-digit percentages for the year ending July 31, 2025 [14] Other Important Information - The company returned $117 million to shareholders through dividends and share buybacks, marking the 39th consecutive year of annual dividend increases [4][6] - The acquisition of Gravotech is expected to enhance the company's capabilities in part marking and identification, with projected sales of approximately $125 million in fiscal 2025 [19][20] Q&A Session Summary Question: Can you help us with the cadence of earnings throughout the year? - Management indicated that earnings may vary between the first and second halves, with a cautious outlook on organic growth due to economic conditions [21][22] Question: What needs to be done to integrate Gravotech? - Integration is expected to be minor, focusing on back-office operations and leveraging R&D capabilities [26][27] Question: Is there a specific number for stock buybacks next year? - The company has authorized $100 million for share buybacks but will be disciplined in execution based on market conditions [28][29] Question: Can you discuss the Track & Trace initiatives? - Management reported positive adoption of the V4500 data scanner and emphasized the importance of a complete portfolio for manufacturing needs [30][31] Question: How is the performance in Southeast Asia and India? - The company has seen significant growth in India, with plans for further investment and expansion in the region [40][41] Question: What are the differences in performance between Q3 and Q4 in Europe? - Management noted that Q3 was unexpectedly strong, while Q4 reflected the overall economic challenges in Europe [45][46]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-14959 BRADY CORPORATION (Exact name of registrant as specified in charter) Wisconsin 39-0178960 (State or other jurisdiction of inco ...

Financial Performance - Diluted EPS for Q4 fiscal 2024 increased 15.0% to a record high of $1.15 compared to $1.00 in Q4 fiscal 2023[1] - Income before income taxes increased 6.9% to $68.2 million for Q4 fiscal 2024 compared to $63.8 million in Q4 fiscal 2023[3] - Total net income for the year ended July 31, 2024, was $197.2 million, compared to $174.9 million for the year ended July 31, 2023[5] - Net income for the year ended July 31, 2024, was $197,215,000, compared to $174,857,000 for the previous year, reflecting an increase of 12.8%[17] - The company reported a GAAP Net Income of $55,456 million for Q3 2024, compared to $49,378 million in Q3 2023, which is a 12.5% increase[22] - The year-end Income before income taxes (GAAP measure) for 2024 was $247,841 million, compared to $225,696 million in 2023, showing a growth of 9.8%[20] Revenue and Sales - Sales for Q4 fiscal 2024 were $343.4 million, a decrease of 0.7% from $345.9 million in Q4 fiscal 2023, with organic sales growth of 1.6%[3] - For the year ended July 31, 2024, sales increased 0.7% to $1.34 billion compared to $1.33 billion in the prior year[5] - Total net sales for the year were $1,341,393,000, a slight increase from $1,331,863,000, reflecting a growth of 0.7%[18] Profitability - Gross profit margin rose to 51.6% in Q4 fiscal 2024 from 50.8% in the same quarter last year[1] - The company reported a total segment profit margin of 21.2% for the year, compared to 19.8% in the previous year, indicating improved profitability[18] - Segment profit for the Americas & Asia was $53,353,000, up from $49,992,000, representing an increase of 4.3%[18] Cash Flow and Assets - Net cash provided by operating activities reached a record high of $255.1 million in fiscal 2024, up from $209.1 million in fiscal 2023[1] - Cash and cash equivalents at the end of the period were $250,118,000, up from $151,532,000, indicating a significant increase of 64.9%[17] - Net cash provided by operating activities was $255,074,000 for the year, compared to $209,149,000 in the previous year, an increase of 21.9%[17] - Total current assets increased to $599,715,000 as of July 31, 2024, up from $524,820,000 in the previous year, representing a growth of 14.3%[15] Shareholder Returns - The company announced a share buyback program of an additional $100 million, equating to approximately 1.5 million shares[2] Guidance and Future Outlook - Fiscal 2025 diluted EPS guidance is set at $4.15 to $4.45 on a GAAP basis, representing a 2.0% to 9.3% increase over the previous year[2] - The company expects Diluted EPS Excluding Certain Items for fiscal 2025 to be between $4.40 and $4.70[24] Debt and Liabilities - Total liabilities rose to $448,911,000 from $398,338,000, marking an increase of 12.7% year-over-year[15] - Long-term debt increased to $90,935,000 from $49,716,000, a rise of 82.7% year-over-year[15] Retained Earnings and Expenses - The company’s retained earnings grew to $1,174,025,000, up from $1,021,870,000, reflecting an increase of 14.9%[16] - Amortization expense for the year ended July 31, 2024, was $7,239 million, down from $8,983 million in 2023, a reduction of 19.4%[22] - The company’s amortization expense for the year ended July 31, 2024, was $9,421 million, down from $11,739 million in 2023, reflecting a decrease of 19.7%[20] Tax and Exclusions - Income Tax Expense Excluding Certain Items for Q3 2024 was $13,292 million, down from $14,993 million in Q3 2023, indicating a decrease of 11.4%[21] - Income Before Income Taxes Excluding Certain Items for Q3 2024 was $70,545 million, up from $66,207 million in Q3 2023, representing a 3.9% increase[20] - Net Income Excluding Certain Items for the year ended July 31, 2024, was $204,454 million, compared to $181,501 million in 2023, reflecting a 12.6% year-over-year growth[22] - Diluted EPS Excluding Certain Items for Q3 2024 was $1.19, an increase from $1.04 in Q3 2023, marking a 14.4% rise[23]

Core Viewpoint - Brady Corporation reported record-high earnings per share (EPS) for the fourth quarter and fiscal year 2024, driven by strong operational performance and strategic initiatives, including share repurchase programs and new product launches [2][9]. Financial Performance - Diluted EPS increased 15.0% to $1.15 in Q4 FY2024 from $1.00 in Q4 FY2023, while diluted EPS excluding certain items rose 14.4% to $1.19 from $1.04 [1][5]. - Gross profit margin improved to 51.6% in Q4 FY2024 compared to 50.8% in the same quarter last year [1]. - Net cash provided by operating activities reached a record high of $255.1 million in FY2024, up from $209.1 million in FY2023 [1][24]. Sales and Revenue - Sales for Q4 FY2024 decreased by 0.7% to $343.4 million from $345.9 million in Q4 FY2023, with organic sales growth of 1.6% offset by foreign currency translation and divestitures [3]. - For the year ended July 31, 2024, sales increased by 0.7% to $1.34 billion compared to $1.33 billion in the prior year, with organic sales growth of 2.6% [6]. Income Metrics - Income before income taxes rose 6.9% to $68.2 million in Q4 FY2024 from $63.8 million in Q4 FY2023, while net income increased to $55.5 million from $49.4 million [4][5]. - For the year ended July 31, 2024, income before income taxes increased 9.8% to $247.8 million, and net income rose to $197.2 million from $174.9 million [7][8]. Shareholder Returns - The Board of Directors authorized an additional $100 million for share repurchase, equating to approximately 1.5 million shares or about 3.0% of total outstanding shares [1][10]. - In FY2024, the company repurchased 1.3 million shares for $72.2 million and returned $45.1 million to shareholders in dividends [9]. Guidance for Fiscal 2025 - The company expects GAAP diluted EPS to range from $4.15 to $4.45, representing a 2.0% to 9.3% increase over the previous year's GAAP EPS of $4.07 [11]. - Diluted EPS excluding certain items is projected to range from $4.40 to $4.70, indicating a 4.3% to 11.4% increase over the previous year's figure of $4.22 [12].

MILWAUKEE, Sept. 05, 2024 (GLOBE NEWSWIRE) -- On September 4, 2024, Brady Corporation's (NYSE: BRC) Board of Directors approved an increase in the annual dividend to shareholders of the Company's Class A Common Stock from $0.94 per share to $0.96 per share. A quarterly dividend to shareholders of the Company's Class A Common Stock of $0.24 per share will be paid on October 31, 2024, to shareholders of record at the close of business on October 10, 2024. This dividend represents the 39th consecutive annual i ...

Core Insights - Hormel Foods Corporation announces the retirement of Deanna Brady, executive vice president of Retail, effective October 27, 2024, after nearly three decades of service [1][3] - John Ghingo will rejoin Hormel Foods as the leader of the Retail segment starting October 28, 2024, after previously serving as president of Applegate Farms from 2018 to 2022 [2][4] Company Leadership Transition - Deanna Brady has been instrumental in driving record growth and managing multi-billion-dollar divisions during her tenure at Hormel Foods [3] - John Ghingo is recognized for his dynamic leadership and expertise in the consumer packaged goods industry, positioning him well to lead the Retail segment [4][7] Background of Key Individuals - Deanna Brady began her career at Hormel Foods in 1996 and held various leadership roles, culminating in her current position in 2022 [5][6] - John Ghingo has extensive experience in the industry, having held leadership roles at companies such as The WhiteWave Foods Company and Mondelēz International [7][8] Company Overview - Hormel Foods Corporation generates over $12 billion in annual revenue and operates in more than 80 countries, with a diverse portfolio of well-known brands [9][10] - The company is recognized for its corporate responsibility and has received numerous accolades, including being named one of America's most responsible companies by Newsweek [9]

Core Viewpoint - Brady Corporation has completed the acquisition of Gravotech Holding for EUR 120 million (approximately USD 130 million), enhancing its capabilities in specialized marking and engraving solutions [1][2]. Company Overview - Brady Corporation is an international manufacturer and marketer of solutions that identify and protect people, products, and places, with a diverse customer base across various industries [3]. - As of July 31, 2023, Brady employed approximately 5,600 people and reported fiscal 2023 sales of approximately USD 1.33 billion [3]. Acquisition Details - The acquisition of Gravotech is expected to expand Brady's product offerings into precision direct part marking and engraving, aligning with its market position in product identification solutions [2]. - Brady anticipates sales from Gravotech of EUR 116 million (approximately USD 125 million) and EBITDA of EUR 12 million (approximately USD 13 million) in fiscal year 2025, excluding integration-related costs [2]. Strategic Intent - The acquisition allows Brady to leverage its global footprint to expand Gravotech's addressable market across Europe, Asia, and the Americas [2]. - Gravotech's leadership expressed optimism about the acquisition, highlighting opportunities for long-term profitable growth and market expansion [2].

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in stock prices for short-term investing, highlighting that while trends can be profitable, ensuring their longevity is challenging [1][2]. Group 1: Stock Performance - Brady (BRC) has shown a solid price increase of 11.9% over the past 12 weeks, indicating strong investor interest [4]. - The stock has maintained a price increase of 0.3% over the last four weeks, suggesting that the upward trend is still intact [5]. - BRC is currently trading at 85.4% of its 52-week high-low range, indicating a potential breakout [6]. Group 2: Fundamental Strength - BRC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors seeking stocks with strong upward trends supported by solid fundamentals [3]. - The article suggests that there are multiple stocks passing through the "Recent Price Strength" screen, indicating potential investment opportunities [8].

Neils Christensen Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.com @Neils_c Share Disclaimer: The views expres ...