Brady Corp.’s (BRC) July 2024 fiscal year is off to a good start, as the company reported better-than-expected results. EPS were $1.00, vs. $0.84 last year, which was $0.05 better than expectations. Revenues rose 2.9%, or 2.7% on an organic basis, excluding the impact of currency and divestitures.

A better product mix and lower costs help expand gross margins. At the same time, the company still invested heavily in research and development, which was up 12.6% in the quarter, to help drive future growth. Cash flow was another strong feature, as it increased to $62.2 million from $28 million a year ago.

Brady also maintained its guidance for the current fiscal year, expecting EPS of $3.85 to $4.10, up from $3.64 last year. New product introductions in both the safety and identification divisions should help the company achieve their guidance, which, in my opinion, may be conservative. Trading at less than 14X this year’s EPS estimates, this financially strong, steady grower remains a bargain. BRC remains a buy below $52. My target is $62.