CoreCivic (NYSE:CXW): Strongest Q4 Results from the Safety & Security Services Group
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at safety & security services stocks, starting with CoreCivic (NYSE:CXW).
Rising concerns over physical security, cybersecurity threats, and workplace safety regulations will present opportunities for companies in this sector. AI and digitization will enhance surveillance, access control, and threat detection, which could benefit key players in Safety & Security Services. These trends could also introduce ethical and regulatory concerns over data privacy and automated decision-making in security operations, giving rise to headline risks. Finally, increasing scrutiny on private security practices and evolving criminal justice policies again mean that companies in the space need to operate with the utmost care or risk being the poster child of abuse of power.
The 5 safety & security services stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1% above.
While some safety & security services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.2% since the latest earnings results.
Best Q4: CoreCivic (NYSE:CXW)
As the nation's largest owner of partnership correctional and detention facilities, CoreCivic (NYSE:CXW) operates correctional facilities, detention centers, and residential reentry programs through government contracts across the United States.
CoreCivic reported revenues of $479.3 million, down 2.4% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates.
CoreCivic Total Revenue
CoreCivic achieved the biggest analyst estimates beat but had the slowest revenue growth of the whole group. The stock is up 7.1% since reporting and currently trades at $20.19.
Founded in 1859 and recognizable by its iconic armored trucks, The Brink's Company (NYSE:BCO) provides secure transportation, cash management, and digital retail solutions for financial institutions, retailers, and government agencies worldwide.
Brink's reported revenues of $1.26 billion, up 1.4% year on year, outperforming analysts’ expectations by 0.9%. The business had a satisfactory quarter with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ EPS guidance for next quarter estimates.
Brink's Total Revenue
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 11.6% since reporting. It currently trades at $83.47.
Managing approximately 81,000 beds across 100 facilities worldwide, GEO Group (NYSE:GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa.
GEO Group reported revenues of $607.7 million, flat year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates.
The stock is flat since the results and currently trades at $25.52.
Founded in 1914 and known as "The Safety Company," MSA Safety (NYSE:MSA) develops and manufactures advanced safety products that protect workers and facility infrastructures across industries like firefighting, energy, construction, and manufacturing.
MSA Safety reported revenues of $499.7 million, flat year on year. This number missed analysts’ expectations by 3.7%. Overall, it was a softer quarter as it also produced EPS in line with analysts’ estimates.
MSA Safety had the weakest performance against analyst estimates among its peers. The stock is down 8.7% since reporting and currently trades at $148.80.
Founded over a century ago in 1914 and evolving from its roots in printed identification materials, Brady Corporation (NYSE:BRC) manufactures and supplies identification solutions and workplace safety products that help companies identify and protect their premises, products, and people.
Brady reported revenues of $356.7 million, up 10.6% year on year. This print came in 0.7% below analysts' expectations. Overall, it was a softer quarter as it also recorded a miss of analysts’ EPS estimates.
Brady delivered the fastest revenue growth among its peers. The stock is down 6.8% since reporting and currently trades at $69.59.
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