Brink's (NYSE:BCO) Stock Price Up 10.5% Following Earnings Beat

Key Points

• Brink's Company shares surged 10.5% after reporting better-than-expected quarterly earnings of $1.79 EPS, exceeding analysts' estimates by $0.36.
• The company announced a quarterly dividend of $0.255, with an annualized dividend yield of 1.0%, and a dividend payout ratio of 27.57%.
• Despite the positive earnings report, Wall Street Zen downgraded Brink's from a "buy" to a "hold" rating on its shares.

Brink's Company (The) (NYSE:BCO - Get Free Report)'s stock price traded up 10.5% on Wednesday following a better than expected earnings announcement. The stock traded as high as $96.37 and last traded at $97.94. 439,772 shares traded hands during trading, an increase of 43% from the average session volume of 306,484 shares. The stock had previously closed at $88.66.

The business services provider reported $1.79 earnings per share for the quarter, topping the consensus estimate of $1.43 by $0.36. The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.27 billion. Brink's had a return on equity of 86.86% and a net margin of 3.21%. The business's quarterly revenue was up 3.8% on a year-over-year basis. During the same quarter last year, the company earned $1.67 EPS.

Brink's Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 2nd. Shareholders of record on Monday, July 28th will be issued a dividend of $0.255 per share. The ex-dividend date of this dividend is Monday, July 28th. This represents a $1.02 annualized dividend and a dividend yield of 1.0%. Brink's's dividend payout ratio (DPR) is presently 27.57%.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen raised Brink's from a "hold" rating to a "strong-buy" rating in a report on Sunday.

Insider Transactions at Brink's

In other news, insider Michael E. Sweeney sold 1,314 shares of the company's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $99.05, for a total value of $130,151.70. Following the completion of the sale, the insider directly owned 10,326 shares of the company's stock, valued at approximately $1,022,790.30. This represents a 11.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last quarter, insiders have sold 2,802 shares of company stock worth $280,262. Company insiders own 0.72% of the company's stock.

Hedge Funds Weigh In On Brink's

Several institutional investors have recently added to or reduced their stakes in the stock. American Century Companies Inc. increased its holdings in shares of Brink's by 1.9% in the first quarter. American Century Companies Inc. now owns 1,525,099 shares of the business services provider's stock valued at $131,403,000 after purchasing an additional 28,439 shares during the period. Ariel Investments LLC raised its position in Brink's by 8.7% during the 1st quarter. Ariel Investments LLC now owns 1,394,284 shares of the business services provider's stock worth $120,132,000 after buying an additional 112,180 shares during the last quarter. Channing Capital Management LLC lifted its stake in shares of Brink's by 7.6% in the 1st quarter. Channing Capital Management LLC now owns 890,700 shares of the business services provider's stock worth $76,743,000 after acquiring an additional 62,676 shares during the period. Northern Trust Corp boosted its holdings in shares of Brink's by 14.0% in the fourth quarter. Northern Trust Corp now owns 613,301 shares of the business services provider's stock valued at $56,896,000 after acquiring an additional 75,138 shares in the last quarter. Finally, Southernsun Asset Management LLC increased its stake in shares of Brink's by 15.4% during the fourth quarter. Southernsun Asset Management LLC now owns 597,633 shares of the business services provider's stock worth $55,442,000 after acquiring an additional 79,701 shares during the period. Institutional investors and hedge funds own 94.96% of the company's stock.

Brink's Stock Up 0.4%

The company has a quick ratio of 1.51, a current ratio of 1.51 and a debt-to-equity ratio of 9.84. The stock has a market capitalization of $4.39 billion, a PE ratio of 28.47 and a beta of 1.46. The firm's fifty day moving average is $90.15 and its 200-day moving average is $89.35.

About Brink's

The Brink's Co engages in providing cash management services, digital retail solutions, and ATM managed services. It operates through the following geographical segments: North America, Latin America, Europe, and Rest of World. The North America segment operates in the U.S. and Canada. The Latin America segment refers to the operations in Latin American countries.