Brink's Q4 Earnings Beat Expectations, Sets Optimistic Targets For 2024

Brink’s Company BCO fourth-quarter fiscal 2023 sales growth of 5% year-on-year to $1.246 billion, marginally missing the analyst consensus estimate of $1.247 billion.

Adjusted EPS of $2.76 beat the analyst consensus of $2.53.

Revenue from North America slipped to $403.7 million from $413.1 million Y/Y, Latin America increased to $343.3 million from $311.9 million Y/Y, and Europe jumped to $294.4 million from $262.6 million Y/Y.

Adjusted operating profit rose 1% Y/Y to $190 million, and the corresponding operating margin increased 230 basis points Y/Y to 13.5%. GAAP operating margin declined 50 basis points to 15.2%.

Adjusted EBITDA rose to $251.9 million from $247.4 million Y/Y.

The company held $1.7 billion in cash and equivalents as of Dec. 31, 2023. Operating cash flow totaled $702 million, with a free cash flow of $393 million for the fiscal year.

Mark Eubanks, president and CEO, said: “Looking into 2024, we expect to drive mid-single digit revenue growth, with continued double-digit organic growth in AMS and DRS.”

FY24 Outlook: Brinks expects adjusted revenue of $5.075 billion – $5.225 billion versus the consensus of $5.10 billion.

BCO projects adjusted EPS of $7.30 – $8.00 versus the consensus of $7.83.

The company expects an adjusted EBITDA of $935 million to $985 million.

The Schwab Ariel ESG ETF SAEF has 3% exposure to Brinks and gained close to 5% last month. 

Price Action: BCO shares were up 2.5% at $81.56 at the time of publication Tuesday.

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