BRC stock is showing good relative strength on a big forecast in revenue growth annually over the next 5 years as demand for tracking people and packages are forecasted to explode higher over the next 5 years.
Revenue, EPS, and Profit Margin Growth
When comparing the Revenue growth rate of the last 5 years to the growth rate of the upcoming 5 years, we see that the growth is accelerating.
The Earnings Per Share is expected to grow by 11.44% on average over the next 5 years. This is quite good.
BRC has a Profit Margin of 11.04%. This is amongst the best returns in the industry. The industry average is 1.96%. BRC outperforms 85% of its industry peers.
Code Corporation Expands North American Channel Program to Meet the Growing Demand for Data Capture and Barcode Scanning Technology
On January 5, 2022, Code Corporation, a global leader in barcode scanning and data capture technologies, today announced it is enhancing and expanding the Code Alliance partner program to align with and empower its partners’ capabilities and business models and accelerate their profitability.
“Innovation is in the DNA of Code Corporation, and we are bringing that to the surface as we unveil several updates to the Code Alliance partner program,” said Emily Scales, Senior Channel Marketing Manager. “Our executive team has shown an incredible commitment to our partner program by heavily investing in the program. Because of this support, we can deliver our partners the most easy-to-use program in the industry with personalized benefits, engineered to enhance partner knowledge, profitability and success.”
Enhancements to Code Alliance include a new structure that supports three separate programs consisting of a Selected Reseller, National and Code’s first-ever ISV program.
The Selected Reseller program is tailored to resellers working through distribution and with a lower yearly revenue commitment. The Reseller program provides multiple VAR levels and includes robust incentives, discounts, training and marketing support.
The Code Alliance National program includes an expanded portfolio of discounts, incentives, technical support, promotions and marketing support, including an assigned strategic channel manager for partners with a substantial revenue commitment and year-over-year growth.
The new ISV program highlights Code’s commitment to all partners in the channel, providing support and incentives previously untapped to these valued partners.
Scales said she is also proud to announce a new Partner Portal with access to exclusive resources including a new learning management system (LMS) that will be available near the end of Q1. This LMS platform will be a one-stop-shop for learning and training on Code’s products and solutions. As with all aspects of the program, the LMS is aligned with enhanced rewards and incentives to further build partner relationships.
By putting partners’ needs first, Code Alliance helps them grow and succeed with support and access to a globally leading portfolio of data capture and barcode scanning technology. These innovations empower Code’s partners to differentiate themselves and stand above the competition by elegantly solving highly complex customer challenges.
Code Corporation is part of the Brady Corporation (NYSE: BRC) owned companies. For more than 20 years, Code Corporation has been an industry pioneer, leader, and champion for data capture innovation and has garnered more than 100 patents. By crafting and continuing to perfect its unique decoding algorithms, Code and its line of image-based scanning and decoding technology consistently deliver unparalleled performance companies around the world depend on every day. Code designs and manufactures a complete line of market-leading hardware and software data capture solutions. Code products are not only valued for providing a consistent level of workflow efficiency year after year, but also for their ergonomic design, durability, ease of customization, and seamless integration.
Brady Q1 2022 Results
Brady reported Q1 EPS of 67c versus the consensus estimate of 73c. The company reported Q1 revenue of 321.475M versus the consensus estimate of $313.79M.
“Our investments in sales, marketing, and research and development over the last several years are paying off. These investments, coupled with increased customer demand, and the acquisitions completed in the fourth quarter of last year, helped us generate double-digit sales growth this quarter,” said Brady’s President and Chief Executive Officer, J. Michael Nauman. “Our strong 16.0 percent year-over-year sales growth was driven by our Identification Solutions division which had total sales growth of 25.4 percent this quarter. We remain excited about the three acquisitions completed last year, which are performing at or above our initial expectations. Supply chains for certain components remain tight and we are experiencing inflation in many areas including wages, freight, utilities, and raw materials. Even with these inflationary pressures, our gross profit margin was still an enviable 48.2 percent which was right in line with the gross profit margin experienced in the fourth quarter of last year. We believe that these gross margin challenges are temporary and once our pricing and efficiency initiatives catch up to the cost inflation, our strong sales growth and improved gross profit margins will drive significant bottom-line growth.”
📺 Introducing The Brady Company & Products
📈 BRC Stock Technical Analysis
The long and short-term trends are both neutral. BRC is part of the Commercial Services & Supplies industry. There are 100 other stocks in this industry, BRC did better than 63% of them. BRC is currently trading in the middle of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so BRC is lagging the market slightly.
There is a support zone ranging from 52.12 to 53.76. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also a support zone ranging from 50.70 to 50.70. This zone is formed by a combination of multiple trend lines in the daily time frame. Finally, there is a support zone ranging from 49.28 to 49.34. This zone is formed by a combination of multiple trend lines in multiple time frames.
Although the technical rating is only medium, BRC does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 54.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 53.76, a Stop Loss order could be placed below this zone. The Setup Rating on BRC stock is 8 as of January 17, 2022. Click here to sign up for email alerts on BRC stock and when it’s Setup Rating changes.