Brady Corporation (NYSE:BRC) shares gained nearly 6% in premarket trading on Monday after the company reported third-quarter earnings and revenue that exceeded Wall Street expectations and lifted its full-year adjusted earnings guidance.
Quarterly earnings and revenue top forecasts
The identification solutions provider posted adjusted earnings of $1.50 per share for the third quarter, ahead of analyst expectations of $1.35 per share.
Quarterly revenue reached $435.2 million, also beating consensus estimates of $405.9 million.
Revenue increased 13.8% year-over-year from $382.6 million recorded in the same quarter last year.
The company said growth was supported by 8.2% organic sales expansion, a 2.1% contribution from acquisitions and a 3.5% benefit from favorable foreign currency movements.
GAAP earnings per share came in at $1.21, compared with $1.09 in the third quarter of fiscal 2025.
Company raises full-year earnings guidance
Following the stronger-than-expected quarter, Brady increased its adjusted EPS guidance for the full fiscal year to a range of $5.20 to $5.30 per share.
That compares with its previous outlook of $4.95 to $5.15 per share and is also above analyst consensus estimates of $5.01.
The company also updated its fiscal 2026 GAAP EPS forecast to a range of $4.66 to $4.76 per share, compared with its prior guidance range of $4.62 to $4.82.
Data center demand and product launches support growth
“Our investment in research & development resulted in strong organic sales growth globally, along with a record quarter of adjusted earnings per share,” president and chief executive Russell R. Shaller said.
“New product launches over the last several years as well as data center construction drove our sales growth, which is an end market that is ideal for our high-performance identification solutions.”
The Americas & Asia division generated revenue of $290.1 million, up 14.4% year-over-year, including 10.1% organic growth.
Meanwhile, revenue in the Europe & Australia segment rose 12.6% to $145.2 million, supported by 4.5% organic growth.
Net cash generated from operating activities increased to $78.2 million during the quarter, compared with $59.9 million in the prior-year period.