Analysts Have Made A Financial Statement On Brady Corporation's (NYSE:BRC) Annual Report

The full-year results for Brady Corporation (NYSE:BRC) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of US$1.3b were in line with what the analysts predicted, Brady surprised by delivering a statutory profit of US$4.07 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Brady

Taking into account the latest results, the most recent consensus for Brady from three analysts is for revenues of US$1.50b in 2025. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.9% to US$4.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.48b and earnings per share (EPS) of US$4.31 in 2025. So the consensus seems to have become somewhat more optimistic on Brady's earnings potential following these results.

The consensus price target was unchanged at US$84.67, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Brady, with the most bullish analyst valuing it at US$88.00 and the most bearish at US$80.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Brady is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Brady's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Brady to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Brady's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Brady going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.