Brink’s (NYSE:BCO) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Brink’s (NYSE:BCO) announced its quarterly earnings data on Thursday. The business services provider reported $2.54 EPS for the quarter, beating analysts’ consensus estimates of $2.47 by $0.07, FiscalAI reports. Brink’s had a net margin of 3.31% and a return on equity of 93.16%.

Here are the key takeaways from Brink’s’ conference call:

• Brink’s agreed to acquire NCR Atleos for about $6.6 billion (cash $30/sh + 0.1574 Brink’s shares), funded by cash on hand and a committed bridge facility, with closing expected in ~12 months subject to regulatory and shareholder approvals.
• Management expects $200 million of annual run-rate cost synergies within three years, the deal to be at least 35% EPS-accretive in year one, and the combined company to generate roughly $10 billion of revenue, $2 billion of adjusted EBITDA (~20% margins) and about $1 billion of annual free cash flow.
• The companies say the businesses are highly complementary — NCR Atleos’ ~600,000 ATM installed base, software and ATM-as-a-service plus Brink’s global cash logistics and route network should enable an end-to-end AMS/DRS offering, route densification and cross-sell opportunities.
• The transaction faces typical execution and regulatory risks — it requires approvals, will take ~12 months to close, and management warned of integration distraction even as they ring-fence operations and run an integration office.
• Management frames longer-term organic growth for the combined company as a resilient mid-single-digit rate while highlighting faster growth in AMS/DRS and ATM-as-a-service, and notes that potential revenue synergies were not included in the financial case.

Brink’s Price Performance

BCO traded up $6.29 during trading on Thursday, reaching $135.87. 547,721 shares of the stock were exchanged, compared to its average volume of 250,677. The company has a debt-to-equity ratio of 9.14, a current ratio of 1.46 and a quick ratio of 1.46. The company has a market capitalization of $5.64 billion, a price-to-earnings ratio of 34.75 and a beta of 1.09. Brink’s has a 1 year low of $80.10 and a 1 year high of $136.37. The business’s 50 day moving average price is $124.71 and its two-hundred day moving average price is $117.44.

Brink’s Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, March 2nd. Stockholders of record on Monday, February 2nd will be given a dividend of $0.255 per share. This represents a $1.02 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Monday, February 2nd. Brink’s’s dividend payout ratio (DPR) is presently 26.09%.

Analysts Set New Price Targets

Separately, Truist Financial raised their price target on Brink’s from $138.00 to $163.00 and gave the company a “buy” rating in a report on Tuesday, February 10th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $163.00.

Brink’s declared that its Board of Directors has initiated a stock repurchase program on Thursday, December 11th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the business services provider to purchase up to 15.4% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board believes its stock is undervalued.

Insider Activity

In related news, insider Michael E. Sweeney sold 1,418 shares of the business’s stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $119.50, for a total value of $169,451.00. Following the sale, the insider directly owned 5,755 shares in the company, valued at $687,722.50. The trade was a 19.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.49% of the stock is owned by company insiders.

Institutional Trading of Brink’s

Several institutional investors and hedge funds have recently modified their holdings of the business. Quantbot Technologies LP purchased a new stake in shares of Brink’s during the second quarter worth about $178,000. Canada Pension Plan Investment Board purchased a new position in shares of Brink’s during the second quarter valued at approximately $152,000. Osaic Holdings Inc. boosted its position in Brink’s by 360.4% during the second quarter. Osaic Holdings Inc. now owns 1,501 shares of the business services provider’s stock worth $133,000 after acquiring an additional 1,175 shares during the last quarter. Aquatic Capital Management LLC purchased a new stake in Brink’s in the 3rd quarter worth approximately $77,000. Finally, Steward Partners Investment Advisory LLC grew its stake in Brink’s by 237.1% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 590 shares of the business services provider’s stock worth $69,000 after acquiring an additional 415 shares during the period. Hedge funds and other institutional investors own 94.96% of the company’s stock.

Brink’s Company Profile

The Brink’s Company (NYSE: BCO) is a global leader in secure logistics and cash management solutions. The company provides a comprehensive suite of services that span armored transportation, cash-in-transit (CIT), ATM services, smart safe solutions, and valuables storage. Through its network of service centers and armored vehicles, Brink’s ensures the safe and efficient movement of currency, precious metals, and other high-value assets for banks, retailers, mints, and government agencies.

Brink’s armored transport operations are complemented by technology-driven cash management offerings, including deposit automation and secure vaulting.