NYSE$BCO

Brinks Co · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Brink's reported strong Q4 2020 results, driven by sustainable cost realignment and resilient global cash usage.

Brink's Q4 2020 results demonstrated business resilience and strong rebound from the pandemic bottom, with revenue up 9% and GAAP operating profit up 53%. Management expects strong revenue and profit growth in 2021.

  • Revenue increased by 9%, with organic recovery and acquisitions offsetting pandemic impacts.
  • GAAP operating profit rose by 53%, and non-GAAP operating profit increased by 26%.
  • GAAP operating margin improved to 11%, up 320 bps, while non-GAAP operating margin reached 14.2%, up 180 bps.
  • GAAP EPS was $0.50, and non-GAAP EPS was $1.64, a 39% increase.

Headline financials

Total Revenue

$1.02B

Previous: $936M+9.2%
EPS (adj)

$1.64

Previous: $1.18+39.0%
Capital Expenditures

$39.4M

Previous: $48.8M-19.3%
Free Cash Flow

$191M

Previous: $168M+13.6%
Net Income

$25M

Previous: -$2.6M+1061.5%
Operating Income

$112M

Previous: $73.3M+52.8%
Gross Profit

$265M

Previous: $229M+15.4%
Cash & Equivalents

$621M

Previous: $311M+99.6%
Total Assets

$5.14B

Previous: $3.76B+36.4%
Stock-Based Comp

$10.4M

Previous: $6.8M+52.9%

Revenue & EPS history

Brinks · Revenue · Quarterly

$1.02B

Q4 2020+9.2%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Brink’s expects strong growth in its financial results as it moves through 2021, with revenue and profit growth continuing to accelerate, especially in the second half.

Tailwinds

  • Continued retail recovery from pandemic lows
  • Realization of full-year benefits from the G4S acquisitions
  • Sustainability of cost reductions
  • Expect revenue growth of 17% (midpoints of non-GAAP guidance)
  • Operating profit growth of 30% (midpoints of non-GAAP guidance)

Headwinds

  • Impact of highly inflationary accounting on Argentina operations
  • Potential Non-GAAP adjusting items
  • Future restructuring actions
  • Changes in cash held for customer obligations
  • Proceeds from the sale of property, equipment and investments in 2021

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 Q4 2020

Historical avgQ4 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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