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Brink’s Quarterly Sales, Profit Top Expectations; Shares Rise

Brink’s Co. delivered better-than-expected sales in the fourth quarter as the cash management and payment solutions provider saw continued organic recovery and positive impact from acquisitions. Shares gained 2.3% in Tuesday’s early morning trading.

Brink’s (BCO) posted earnings per share (EPS) of $1.64 during 4Q, which came in ahead of analysts’ expectations of $1.01. Revenue increased 9% year-on-year to $1.02 billion topping analysts’ estimates of $1 billion. The increase in 4Q revenues was driven by a recovery in cash circulation and the accretive impact of the G4S acquisition, which the company completed in February.

For fiscal 2020, the company generated sales of $3.69 billion, up from the $3.68 billion posted in 2019. Diluted earnings per share came in at $3.76 versus $3.89 in the comparable year-ago period.

Brink’s CEO Doug Pertz said, “Despite the pandemic’s continued impact on near term revenue, we expect strong growth in our financial results as we move through 2021, with revenue and profit growth continuing to accelerate, especially in the second half.”

Looking ahead to fiscal 2021, Brink’s forecasted revenues to land between $4.1 billion to $4.5 billion and earnings per share to be in the range of $4.15 to $5.35 . (See Brink’s Company stock analysis on TipRanks)

Pertz added, “At the midpoints of our non-GAAP guidance, we expect revenue growth of 17%, operating profit growth of 30% and EPS growth of 26%. Adjusted EBITDA is expected to be in a range between $640  million and $730 million, an increase of 21% at the mid-point.”

Last month Truist Financial analyst Tobey Sommer raised the stock’s price target to $96 (24% upside potential) from $90 and reiterated a Buy rating. Sommer noted, “The company is growing at over 5% organically and expanding EBITDA margin by about 100 basis points annually. Brink’s estimates are likely to be exceeded in 2021 while shares have only recovered half way back to their 52 week high.”

According to TipRanks’ Smart Score system, Brink’s gets a score of 4 out of 10, which indicates that the stock is likely to perform in line with market averages.

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