Brink’s (NYSE:BCO) Posts Earnings Results, Beats Expectations By $0.07 EPS

Brink’s (NYSE:BCO) released its earnings results on Thursday. The business services provider reported $2.54 earnings per share for the quarter, topping the consensus estimate of $2.47 by $0.07, FiscalAI reports. Brink’s had a return on equity of 93.16% and a net margin of 3.31%.

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 Stock Up 4.9%

NYSE BCO traded up $6.29 during trading hours on Thursday, hitting $135.87. The company had a trading volume of 547,721 shares, compared to its average volume of 250,677. The firm’s 50 day moving average is $124.71 and its 200 day moving average is $117.44. The company has a debt-to-equity ratio of 9.14, a current ratio of 1.46 and a quick ratio of 1.46. Brink’s has a fifty-two week low of $80.10 and a fifty-two week high of $136.37. 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 Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 2nd. Investors of record on Monday, February 2nd will be issued a dividend of $0.255 per share. The ex-dividend date is Monday, February 2nd. This represents a $1.02 annualized dividend and a dividend yield of 0.8%. Brink’s’s payout ratio is presently 26.09%.

Wall Street Analysts Forecast Growth

Separately, Truist Financial increased their price objective on shares of Brink’s from $138.00 to $163.00 and gave the stock a “buy” rating in a report on Tuesday, February 10th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $163.00.

Brink’s announced that its Board of Directors has authorized a share repurchase program on Thursday, December 11th that allows the company to buyback $750.00 million in shares. This buyback authorization allows the business services provider to repurchase up to 15.4% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Brink’s

In other news, insider Michael E. Sweeney sold 1,418 shares of the stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $119.50, for a total value of $169,451.00. Following the completion of the sale, the insider owned 5,755 shares in the company, valued at approximately $687,722.50. This trade represents a 19.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.49% of the stock is owned by insiders.

Hedge Funds Weigh In On Brink’s

Institutional investors and hedge funds have recently bought and sold shares of the stock. Smartleaf Asset Management LLC boosted its holdings in Brink’s by 150.5% in the fourth quarter. Smartleaf Asset Management LLC now owns 243 shares of the business services provider’s stock worth $29,000 after purchasing an additional 146 shares during the period. Advisory Services Network LLC acquired a new position in shares of Brink’s during the third quarter worth approximately $33,000. Global Retirement Partners LLC acquired a new position in Brink’s during the 4th quarter worth $39,000. Wexford Capital LP bought a new stake in shares of Brink’s during the 3rd quarter worth about $42,000. Finally, EverSource Wealth Advisors LLC lifted its position in Brink’s by 161.5% in the second quarter. EverSource Wealth Advisors LLC now owns 523 shares of the business services provider’s stock worth $47,000 after purchasing an additional 323 shares during the period. Hedge funds and other institutional investors own 94.96% of the company’s stock.

About Brink’s

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.