BCO Earnings Prediction
The chart below shows how BCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BCO sees a -1.62% change in stock price 10 days leading up to the earnings, and a +4.69% change 10 days following the report. On the earnings day itself, the stock moves by +1.50%. This data can give you a slight idea of what to expect for the next quarter's release.
BCO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.26B
2.53%
0.43%
Gross Margin
25.02%
0.24%
-0.56%
Operating Margin
11.38%
-11.37%
-3.97%
Net Margin
2.53%
-37.22%
-36.43%
EPS
0.65
-32.99%
-36.27%
No Data Available
BCO Earnings Analysis
The Brink's Company Corporation (BCO.N) Earnings Conference Call
Positive
Organic Growth Surge: 1. Strong Organic Growth: Brink's reported total organic growth of 13% in Q3 2024, with ATM managed services and digital retail solutions (AMS and DRS) achieving an impressive 26% organic growth, exceeding expectations across all regional segments.
Free Cash Flow Performance: 2. Free Cash Flow Generation: The company generated $135 million in free cash flow during the quarter, driven by improved asset efficiency and working capital management, despite the impact of lower EBITDA and currency fluctuations.
Shareholder Return Strategy: 3. Share Repurchase Program: Year-to-date, Brink's has returned $125 million to shareholders through share repurchases, reducing its share count by 5% year-over-year, with plans to exceed $200 million in repurchases for 2024.
Organic Growth Expectations Raised: 4. Increased Growth Expectations: Brink's has raised its organic growth expectations for AMS and DRS to over 20% for the remainder of the year, supported by a robust backlog and a strong pipeline of future opportunities.
North America Margin Expansion: 5. Improved North America Margins: The company has made significant progress in expanding margins in North America, with a 120 basis point increase since the end of the previous year, demonstrating effective operational improvements.
Negative
Currency Impact on Revenue: 1. Currency Headwinds: The strengthening U.S. dollar caused an 11% FX headwind, resulting in a $131 million revenue impact year-over-year.
Declining Adjusted EBITDA: 2. Declining Adjusted EBITDA: Adjusted EBITDA decreased by $4 million year-over-year, with margins down 80 basis points to 18% due to a $10 million increase in security losses and unfavorable revenue mix.
Rising Interest Expenses: 3. Increased Interest Expense: Interest expense rose by $9 million year-over-year to $63 million, driven by higher interest rates and slightly higher debt balances.
Reduced Free Cash Flow Outlook: 4. Lower Free Cash Flow Guidance: Free cash flow is now expected to be about $100 million lower than prior outlook, primarily due to a $20 million cash settlement from currency devaluation in the Mexican peso.
Earnings Per Share Drop: 5. Earnings Per Share Decline: Earnings per share fell by $0.40 year-over-year, attributed to higher interest expenses and the absence of prior year marketable security gains.
BCO FAQs
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BCO Earning Call Sentiment
The Brink's Company (BCO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
BCO.N
2.46%Positive
The earnings call revealed several challenges, including market softness, operational delays, and increased expenses, which negatively impacted financial performance. Despite positive organic growth in AMS and DRS, the decline in EBITDA margins and significant FX headwinds are concerning. The Q&A section highlighted further risks, such as geopolitical uncertainties and security losses. Although share repurchases were substantial, the overall sentiment remains negative due to reduced cash flow guidance and unclear management responses regarding long-term targets. Without a market cap, a negative stock price movement is anticipated over the next two weeks.
