The 10-second takeaway
For the quarter ended June 30 (Q2), Brink's met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins increased, net margins dropped.
Brink's chalked up revenue of $990.5 million. The two analysts polled by S&P Capital IQ foresaw revenue of $990.1 million on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $967.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.18. The two earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. GAAP EPS of $0.18 for Q2 were 71% lower than the prior-year quarter's $0.63 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 18.2%, 80 basis points better than the prior-year quarter. Operating margin was 3.4%, 40 basis points better than the prior-year quarter. Net margin was 0.9%, 230 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.02 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $4.04 billion. The average EPS estimate is $1.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 261 members out of 279 rating the stock outperform, and 18 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Brink's a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brink's is hold, with an average price target of $28.67.
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