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Brink's reports better-than-expected Q1 results

EditorRachael Rajan
Published 2024-05-08, 07:58 a/m
© Reuters.
BCO
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RICHMOND, Va. - The Brink's Company (NYSE:BCO), a global leader in security-related services for banks, retailers, and a variety of other commercial and governmental customers, reported a robust first quarter with earnings surpassing analyst expectations.

The company announced adjusted EPS of $1.52, which was $0.19 higher than the analyst estimate of $1.33. Revenue for the quarter was also higher than expected, coming in at $1.24 billion against the consensus estimate of $1.21 billion.

The company's first-quarter revenue reflected a 4% growth from the same quarter last year, indicating a strong start to the year. The growth was attributed to a 12% organic growth, which the company's president and CEO, Mark Eubanks, highlighted as robust across all segments and customer offerings.

Eubanks credited the growth to accelerating demand for the company's digital retail solutions (DRS) and ATM managed services (AMS), which saw an 18% increase year-over-year (YoY). He also noted the highest first-quarter margins since the metric was first reported, thanks to improved AMS and DRS mix and productivity gains from early developments of the Brink's Business System.

Looking ahead, Brink's provided guidance for the full year of 2024, projecting EPS in the range of $7.30 to $8.00, with a midpoint of $7.65, which is slightly above the analyst consensus of $7.63. Revenue forecasts for FY2024 are expected to be between $5.075 billion and $5.225 billion, with a midpoint of $5.15 billion, which is slightly above the consensus estimate of $5.146 billion.

The company's GAAP net income saw a significant increase of 229% to $49 million, and GAAP EPS went up by 263% to $1.09. Adjusted EBITDA also reached a record high, up 15% to $218 million. The company's trailing twelve months (TTM) GAAP Net Cash from Operations increased by 56% to $800 million, and adjusted Free Cash Flow was up 61% to $363 million.

Eubanks expressed confidence in the company's business transformation initiatives and its positioning to deliver on its 2024 commitments. He remains optimistic about creating additional value for shareholders in the coming years.

The company's financial health appears to be solid, with an increase in cash and cash equivalents from $1.176 billion at the end of December 2023 to $1.122 billion at the end of March 2024. The balance sheet also shows a slight increase in total assets from $6.601 billion to $6.679 billion in the same period.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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