Brady Q1 Profit Increases, Backs FY EPS View; Increases Share Buyback

(RTTNews) - Brady Corp.(BRC) reported that its net earnings for the first-quarter ended October 31, 2015 rose to $18.70 million from $13.58 million in the prior year.

Net earnings for the quarter ended October 31, 2015 were $18.7 million compared to earnings from continuing operations of $15.5 million in the same quarter last year. Non-GAAP earnings from continuing operations were $18.4 million for the quarter ended October 31, 2014.

Earnings per diluted Class A Nonvoting Common Share were $0.37 for the first quarter ended October 31, 2015 compared to earnings from continuing operations per diluted Class A Nonvoting Common Share of $0.30 in the same quarter last year. Non-GAAP earnings from continuing operations per diluted Class A Nonvoting Common Share were $0.36 for the quarter ended October 31, 2014.

Sales for the quarter decreased 8.8 percent to $283.1 million compared to $310.2 million in the first quarter of fiscal 2015. Total organic sales decreased 2.2 percent and foreign currency translation decreased sales by 6.6 percent.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share and revenues of $ 286.27 million. Analysts' estimates typically exclude special items.

The Company's earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2016 remains unchanged at $1.10 to $1.30. Included in this guidance is slightly down organic sales for the balance of fiscal 2016 which is reflective of economic challenges in certain industrial markets and geographies, including North America. Analysts expect annual earnings of $1.17 per share.

On November 18, 2015, Brady's Board of Directors authorized an increase in the Company's share buyback program, authorizing the repurchase of up to a total of two million shares of the Company's Class A Common Stock, inclusive of the shares in the existing share buyback program.