Summary
- Brady produced fiscal second quarter results that included mid-single-digit revenue growth (which drove an EPS beat) and margin improvement.
- I believe leverage to healthcare, entertainment, and manufacturing is helping Brady outperform some of its peers while pruning inadequately profitable products is benefiting margins.
- Valuation looks more "okay" than "compelling", but Brady's self-help opportunities and market/product exposures could help drive a little outperformance as industrial output declines.
For further details see:
Brady: Self-Help Vs. A More Challenging Macro Environment