BCO Brinks Company

Brink's Co. on Tuesday cut its earnings outlook, citing lower operating results in the U.S., weakness in Brazil and adverse foreign exchange rates.

The updated outlook comes a day after activist investor Starboard Value LP increased its stake in the security company, and it comes ahead of an investor day the company is holding later this morning.

Brink's, based in Richmond, Va., said it now expects to report $1.40 to $1.50 in earnings per share this year, down from an earlier projection of $1.55 to $1.75 a share. Analysts have been looking for $1.54 a share, according to Thomson Reuters.

For 2016, the company reduced the low-end of its guidance range and now projects $2 to $2.40 a share. Analysts have predicted $1.98 in per-share earnings next year.

On Monday, Starboard disclosed that it had increased its position in Brink's to 12.4%. In a letter to the company's board, Starboard said the company could turn around what it deemed perennially poor performance by exploring "a strategic combination with another global cash logistics company."

Brinks shares were inactive premarket and have risen 22% this year, including a nearly 5% bump following Starboard's disclosure Monday.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

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(END) Dow Jones Newswires

October 06, 2015 08:55 ET (12:55 GMT)

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