Unlocking Brink's (BCO) International Revenues: Trends, Surprises, and Prospects

Zacks Equity Research

Mon, Mar 3, 2025, 7:15 AM 5 min read

Have you looked into how Brink's (BCO) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this armored car company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

While delving into BCO's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The recent quarter saw the company's total revenue reaching $1.26 billion, marking an improvement of 1.4% from the prior-year quarter. Next, we'll examine the breakdown of BCO's revenue from abroad to comprehend the significance of its international presence.

Exploring BCO's International Revenue Patterns

Of the total revenue, $310.8 million came from Europe during the last fiscal quarter, accounting for 24.59%. This represented a surprise of -0.88% as analysts had expected the region to contribute $313.55 million to the total revenue. In comparison, the region contributed $316 million, or 25.11%, and $294 million, or 23.60%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Latin America contributed $323.6 million in revenue, making up 25.60% of the total revenue. When compared to the consensus estimate of $306.55 million, this meant a surprise of +5.56%. Looking back, Latin America contributed $321 million, or 25.51%, in the previous quarter, and $343 million, or 27.53%, in the same quarter of the previous year.

Rest of World accounted for 16.63% of the company's total revenue during the quarter, translating to $210.2 million. Revenues from this region represented a surprise of +2.49%, with Wall Street analysts collectively expecting $205.1 million. When compared to the preceding quarter and the same quarter in the previous year, Rest of World contributed $209 million (16.61%) and $204 million (16.37%) to the total revenue, respectively.

Prospective Revenues in International Markets

Wall Street analysts expect Brink's to report a total revenue of $1.22 billion in the current fiscal quarter, which suggests a decline of 1.5% from the prior-year quarter. Revenue shares from Europe, Latin America and Rest of World are predicted to be 23.6%, 25% and 16.3%, corresponding to amounts of $287 million, $304.6 million and $198.4 million, respectively.

Analysts expect the company to report a total annual revenue of $5 billion for the full year, marking a decrease of 0.2% compared to last year. The expected revenue contributions from Europe, Latin America and Rest of World are projected to be 24.6% ($1.23 billion), 25.2% ($1.26 billion) and 16.1% ($806.5 million) of the total revenue, in that order.

The Bottom Line

Brink's' leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

Brink's, bearing a Zacks Rank #4 (Sell), is expected to underperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Brink's' Recent Stock Market Performance

Over the past month, the stock has gained 0.8% versus the Zacks S&P 500 composite's 1.3% decrease. The Zacks Business Services sector, of which Brink's is a part, has risen 1.2% over the same period. The company's shares have declined 0.6% over the past three months compared to the S&P 500's 1% decline. Over the same period, the sector has risen 2.2%.

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This article originally published on Zacks Investment Research (zacks.com).

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