A Look Back at Safety & Security Services Stocks’ Q3 Earnings: Brink's (NYSE:BCO) Vs The Rest Of The Pack

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Brink's (NYSE:BCO) and the best and worst performers in the safety & security services industry.

Rising concerns over physical security, cybersecurity threats, and workplace safety regulations will present opportunities for companies in this sector. AI and digitization will enhance surveillance, access control, and threat detection, which could benefit key players in Safety & Security Services. These trends could also introduce ethical and regulatory concerns over data privacy and automated decision-making in security operations, giving rise to headline risks. Finally, increasing scrutiny on private security practices and evolving criminal justice policies again mean that companies in the space need to operate with the utmost care or risk being the poster child of abuse of power.

The 6 safety & security services stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 7.9% on average since the latest earnings results.

Brink's (NYSE:BCO)

Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE:BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.

Brink's reported revenues of $1.34 billion, up 6.1% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with revenue guidance for next quarter slightly topping analysts’ expectations but EPS in line with analysts’ estimates.

Mark Eubanks, president and CEO, said: “We delivered a strong third quarter, above the midpoint of our previous guidance range. In line with our expectations, AMS and DRS growth accelerated quarter-over-quarter to 19% on customer conversions and healthy new additions to our portfolio. Our efforts to transform the business with the Brink's Business System are driving margin expansion with record third-quarter operating profit and EBITDA margins. We continue to improve cash generation, delivering a 30% increase to free cash flow year-over-year driven by improved profitability, improved working capital metrics, and lowered capex intensity. We remain committed to our capital allocation framework, lowering our leverage below three times and reducing our outstanding share count by 5% year-to-date, while making key investments in strategic acquisitions."

Brink's delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 21.5% since reporting and currently trades at $128.61.

Is now the time to buy Brink's? Access our full analysis of the earnings results here, it’s free.

Best Q3: Motorola Solutions (NYSE:MSI)

Born from the company that invented the first portable handheld police radio in 1940, Motorola Solutions (NYSE:MSI) provides mission-critical communications, video security, and command center software solutions for public safety agencies and enterprise customers.

Motorola Solutions reported revenues of $3.01 billion, up 7.8% year on year, outperforming analysts’ expectations by 0.6%. The business had a strong quarter with a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.4% since reporting. It currently trades at $417.48.

Is now the time to buy Motorola Solutions? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: CoreCivic (NYSE:CXW)

Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE:CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.

CoreCivic reported revenues of $580.4 million, up 18.1% year on year, exceeding analysts’ expectations by 7.3%. Still, it was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS estimates.

The stock is flat since the results and currently trades at $18.58.

Read our full analysis of CoreCivic’s results here.

MSA Safety (NYSE:MSA)

Founded in 1914 as Mine Safety Appliances to protect coal miners from dangerous gases, MSA Safety (NYSE:MSA) designs and manufactures advanced safety products that protect workers and facilities across industries including fire service, energy, construction, and manufacturing.

MSA Safety reported revenues of $468.4 million, up 8.3% year on year. This number beat analysts’ expectations by 1.1%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

The stock is up 14.9% since reporting and currently trades at $186.88.

Read our full, actionable report on MSA Safety here, it’s free.

Brady (NYSE:BRC)

Founded in 1914 and evolving through more than a century of industrial innovation, Brady (NYSE:BRC) manufactures and supplies identification solutions and workplace safety products that help companies identify and protect their premises, products, and people.

Brady reported revenues of $405.3 million, up 7.5% year on year. This result surpassed analysts’ expectations by 2.6%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 21.1% since reporting and currently trades at $90.68.

Read our full, actionable report on Brady here, it’s free.

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