Brink's Q1 Earnings: Strong Performance, Raised Outlook and More

Brink's Company BCO reported Q1 2023 revenue growth of 10% Y/Y to $1.19 billion, +16% on a constant currency basis, beating the consensus of $1.17 billion.
Sales by segments: North America $402 million (+9% Y/Y), Latin America $316 million (+8% Y/Y), Europe $269 million (+21% Y/Y) and Rest of the World $199 million (+4% Y/Y).
Adjusted EPS fell 3% Y/Y to $1.16, beating the consensus of $1.09.
Adjusted operating profit increased by 14% Y/Y to $127 million, and the margin expanded by 30 bps to 10.7%.
Adjusted EBITDA improved by 15% Y/Y to $191 million.
Brink generated non-GAAP cash from operating activities of $8.2 million and a free cash outflow of $(36.7) million in the quarter.
FY23 Outlook: Brink reiterated the outlook for revenue at $4.80 billion –$4.95 billion (against the consensus of $4.86 billion) and free cash flow before dividends of $325 million – $375 million.
The company increased the adjusted EPS outlook by $0.15 to $6.45 – $7.15 (consensus: $6.61).
It raised guidance for adjusted operating profit by $10 million to $625 million – $675 million, Adjusted EBITDA by $10 million to $865 million – $915 million and Adjusted EBITDA margin by around 20 basis points to about 18.3%.
Mark Eubanks, president and CEO, commented, "Double-digit revenue growth was highlighted by robust gains in digital retail solutions and ATM managed services, as well as strong pricing discipline across the business. The highest non-GAAP first quarter operating margin in recent history reflects higher levels of productivity including labor improvements in the U.S., benefits from the 2022 global restructuring plan and improved revenue mix."
Price Action: BCO shares are trading higher by 4.28% at $65.78 on the last check Wednesday.

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