Brink's Cuts Earnings Outlook
October 06 2015 - 9:10AM
Dow Jones News
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
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 06, 2015 08:55 ET (12:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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