Brady Corp. Raises Earnings Guidance - Quick Facts

(RTTNews) - Brady Corp. (BRC) increased its fiscal 2020 earnings per class A nonvoting share guidance to a range of $2.50 to $2.60 from prior range of $2.45 to $2.55 due to a reduction in its income tax rate. Analysts polled by Thomson Reuters expect the company to report profit per share of $2.57. Analysts' estimates typically exclude special items.

For fiscal 2020, the company projects organic sales growth of approximately 1.5 to 2.5 percent, and a full-year income tax rate of approximately 20 percent.

For the first-quarter, earnings per class A nonvoting share was $0.70, compared to $0.58, last year. On average, four analysts polled by Thomson Reuters expected the company to report profit per share of $0.63, for the quarter. The company said its earnings were impacted by a reduced income tax rate of 9.8 percent primarily due to a favorable tax audit settlement and tax benefits from equity-based compensation.

First quarter sales were $286.9 million compared to $293.2 million, prior year. Analysts expected revenue of $293.67 million, for the quarter. Sales for the quarter declined 2.1 percent, which consisted of an organic sales decline of 0.4 percent.

"Cash provided by operating activities was $38.8 million this quarter and we finished in a net cash position of nearly $245 million at October 31, 2019, an increase of $107 million since October 31, 2018. Our balance sheet continues to provide significant flexibility for future investment and to return funds to our shareholders," said CFO, Aaron Pearce.