RICHMOND, Va. - The Brink’s Company (NYSE:BCO), a global leader in cash management, secure logistics, and payment solutions, reported a robust fourth quarter with earnings surpassing analyst expectations and provided an optimistic forecast for the upcoming year.
The company announced a fourth-quarter adjusted EPS of $2.76, outperforming the analyst estimate of $2.53. Revenue for the quarter was in line with expectations at $1.25 billion.
The company's stock price responded positively to the news, jumping 4.49% as investors reacted to the earnings beat and strong forward guidance.
Brink’s has set a forecast for the full year 2024 with an EPS range of $7.30 to $8.00, which is above the consensus estimate of $7.66. Additionally, the company expects revenue to reach between $5.075 billion and $5.225 billion, exceeding the analyst consensus of $5.025 billion.
For the full year 2024, Brink’s anticipates adjusted EBITDA to be between $935 million and $985 million, with free cash flow projections ranging from $415 million to $465 million. These figures reflect the company's confidence in its ability to continue driving growth and profitability.
Mark Eubanks, president and CEO, commented on the company's performance, stating, "We took a decisive step forward in the transformation of our business during 2023. I'm proud of the team's ability to drive growth in higher-margin AMS and DRS customer offerings while expanding profit margins." He also highlighted the company's disciplined capital allocation policy and record free cash flow for the year, which enabled a reduction in leverage within the targeted range.
The company's success in the fourth quarter was driven by a 9% organic growth, marking the eighth consecutive quarter of double-digit organic growth in AMS and DRS. However, operating profits were affected by geopolitical and economic uncertainties in certain markets and slower growth in high-margin services in North America.
Looking ahead, Brink’s is set to focus on mid-single digit revenue growth and continued double-digit organic growth in AMS and DRS, with expectations for adjusted EBITDA margins to expand through productivity initiatives and an improved growth and profitability mix in North America.
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