NYSE$BCO

Brinks Co · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Brink's third quarter results reflected strong revenue recovery and cost reductions, driving margin growth.

Brink's reported a 5% increase in revenue (11% in constant currency) and GAAP EPS of $(0.47) with non-GAAP EPS at $0.86. The company's revenue reached 88% of 2019 pro forma levels, and cost reductions drove significant operating profit growth.

  • Revenue increased by 5%, and 11% on a constant currency basis.
  • GAAP EPS was $(.47); non-GAAP EPS was $.86.
  • Revenue reached 88% of 2019 pro forma levels, up from 78% in Q2, with September at 90%.
  • GAAP operating profit was $76 million, with a 7.9% margin; non-GAAP operating profit was $100 million, with a 10.3% margin.

Headline financials

Total Revenue

$971M

Previous: $928M+4.5%
EPS (adj)

$0.86

Previous: $1.05-18.1%
Capital Expenditures

-$79.1M

Previous: -$116M+31.8%
Free Cash Flow

-$103M

Previous: -$111M+6.9%
Net Income

-$23.9M

Previous: $5.4M-542.6%
Operating Income

$76.4M

Previous: $52.5M+45.5%
Gross Profit

$228M

Previous: $214M+6.4%
Cash & Equivalents

$592M

Previous: $337M+75.8%
Total Assets

$4.9B

Previous: $3.7B+32.4%
Stock-Based Comp

$8.3M

Previous: $9.8M-15.3%

Revenue & EPS history

Brinks · Revenue · Quarterly

$971M

Q3 2020+4.5%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Brink's expects a strong finish to 2020, with a fourth-quarter operating margin target of approximately 11.5%. The company is also optimistic about continued margin expansion in 2021.

Tailwinds

  • Ongoing cost actions driving operating profit and margin rates higher.
  • Additional contributions expected from the G4S acquisition.
  • Fourth-quarter operating margin target of approximately 11.5%.
  • Continued margin expansion expected in 2021.
  • Full-year benefits of permanent cost reductions and the G4S acquisition expected in 2021.

Headwinds

  • Government-mandated shutdowns reduced April pro forma revenue to 71% of 2019 levels.
  • Potential impact of highly inflationary accounting on Argentina operations.
  • Uncertainty related to potential Non-GAAP adjusting items.
  • Risks associated with operating in foreign countries.
  • Pandemics and other extraordinary events that negatively affect global or regional cash commerce.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.4%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+3.9%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+20.9%

Q2 2020

Best reaction

-14.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.5%+0.7%-3.3%
Q4 2025-14.4%-8.8%-25.7%
Q3 2025+7.6%+7.5%+10.2%
Q1 2025-5.3%-6.9%-10.4%
Q4 2024+1.9%-6.3%-7.7%
Q3 2024-3.3%-3.7%-9.0%
Q2 2024-5.6%-7.4%+4.2%
Q1 2024+6.2%+6.9%+11.8%
Q4 2023+3.7%+4.5%+16.3%
Q3 2023+3.5%+4.9%+18.7%
Q2 2023-1.5%-0.2%+3.8%
Q1 2023+4.2%+4.1%+13.8%
Q4 2022+6.7%+7.2%+3.8%
Q3 2022-3.2%-0.9%+0.9%
Q2 2022+4.4%+2.7%-0.5%
Q1 2022+0.2%+0.7%+8.3%
Q4 2021+3.3%+2.2%-2.2%
Q3 2021+16.2%+15.6%+6.8%
Q2 2021-3.8%-4.6%-1.4%
Q1 2021+4.3%+3.7%-2.0%
Q4 2020+5.8%+1.1%+3.9%
Q3 2020-2.5%+5.5%+57.1%
Q2 2020+20.9%+13.9%+31.1%
Q1 2020-11.6%-11.8%+0.6%
Q4 2019-6.5%-4.6%-10.5%
Q3 2019-0.8%+2.5%+4.2%
Q2 2019+4.7%+4.6%-18.4%
Q1 2019-3.3%-1.3%-2.5%
Q4 2018+0.9%+3.7%-2.3%
Q3 2018+8.2%+5.5%+4.1%
Q2 2018+2.4%+0.5%-1.1%
Q1 2018+0.5%-1.1%-7.2%
Q4 2017-10.1%-9.3%-10.9%
Q3 2017-8.9%-9.9%-5.1%
Q2 2017+12.9%+10.5%+6.5%
Q1 2017+5.5%+3.9%+7.2%
Q4 2016+16.1%+22.5%+21.2%
Q3 2016+8.7%+5.8%+20.6%
Q2 2016+2.6%+3.6%+15.8%
Q1 2016-13.1%
Q4 2015-0.1%
Q3 2015-2.8%
Q2 2015+3.5%
Q1 2015+15.6%
Q4 2014+7.4%
Q3 2014-7.2%
Q2 2014+2.7%
Q1 2014+1.0%
Q4 2013-1.3%
Q3 2013+9.2%
Q2 2013-1.2%
Q1 2013+6.1%
Q4 2012-8.6%
Q3 2012-7.2%
Q2 2012+1.8%
Q1 2012+18.1%
Q4 2010+2.0%
Q4 2011+2.0%
Q3 2011-5.3%
Q2 2011+1.9%
Q1 2010-5.9%
Q1 2011+0.1%
Q4 2008-1.1%
Q3 2010+2.8%
Q3 2009+2.8%
Q2 2010-1.5%
Q2 2009-1.5%
Q4 2009-1.5%

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