BRC Earnings Prediction
The chart below shows how BRC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BRC sees a -2.08% change in stock price 10 days leading up to the earnings, and a -1.07% change 10 days following the report. On the earnings day itself, the stock moves by +1.72%. This data can give you a slight idea of what to expect for the next quarter's release.
BRC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
356.68M
10.55%
-5.41%
Gross Margin
49.30%
-1.87%
-2.01%
Operating Margin
15.32%
-8.32%
-1.98%
Net Margin
11.31%
-16.35%
-8.86%
EPS
0.83
-7.78%
-12.63%
No Data Available
BRC Earnings Analysis
Brady Corp Corporation (BRC.N) Earnings Conference Call
Positive
Sales and Earnings Growth: Organic sales growth of 2.6% and adjusted earnings per share increased by 7.5% in Q2 2025.
Regional Sales and Income Growth: Strong performance in the Americas and Asia region with organic sales growth of 4.3% and adjusted operating income growth of 12%.
I7500 Industrial Label Printer: Introduction of the I7500 industrial label printer, designed for high volume and high mix labeling, showcasing innovation and investment in new products.
R&D Investment Growth: Increased investment in research and development by over 11%, indicating a commitment to product development and future growth.
Cash Flow Improvement: Operating cash flow improved to $39.6 million, up from $36.1 million in the previous year, demonstrating strong cash generation capabilities.
Positive Free Cash Flow: Free cash flow turned positive at $32.5 million compared to a negative $13.5 million in the previous year, reflecting improved financial health.
Dividend Increase Commitment: The company announced its thirty-ninth consecutive year of annual dividend increases, highlighting a commitment to returning value to shareholders.
Increased EPS Guidance: Adjusted diluted EPS guidance for fiscal 2025 was increased, indicating confidence in future performance and growth.
Negative
Earnings Per Share Shortfall: Brady Corporation reported an EPS of $0.835, missing expectations of $1.23, indicating a significant shortfall in earnings performance.
Sales Decline in Europe/Australia: The company faced a slight organic sales decline of 0.8% in the Europe and Australia region, highlighting challenges in these markets.
Impact of Facility Closures: Facility closures in Beijing and Buffalo resulted in incremental expenses of $2.3 million, negatively impacting gross profit margins, which fell to 49.3% from 50.2% year-over-year.
Rising SG&A Expenses: SG&A expenses increased to $105.9 million, up from $91.3 million in the previous year, raising concerns about rising operational costs.
Net Income Decline: The reported GAAP net income decreased due to increased asset amortization and costs associated with facility closures and reorganizations, leading to a decline in GAAP diluted EPS from $0.90 to $0.83.
Sales Growth Outlook: The company anticipates only low single-digit organic sales growth for the year ending July 31, 2025, indicating a slowdown in growth expectations.
Economic Risks and Performance Impact: Potential risks to guidance include inflationary pressures and an overall slowdown in economic activity, which could further impact performance.
BRC FAQs
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BRC Earning Call Sentiment
Brady Corporation (NYSE:BRC) Q2 2025 Earnings Call Transcript
BRC.N
2.75%Positive
The earnings call presents a mixed outlook. While there is a positive impact from increased adjusted EPS and organic sales growth, there are concerns about declining gross margins and geopolitical risks. The Q&A section highlights uncertainties about tariffs and economic conditions in key regions. The dividend increase and share buyback program provide some positive sentiment, but the lack of clear guidance on new product contributions and potential economic slowdowns balance the outlook, resulting in a neutral sentiment prediction.
