Brink's (BCO) Drops 4.80% Despite Strong Q1 Earnings

The Brink's (BCO) stock price fell by 4.80% today, reflecting a significant decline in its market value.

The strategy of buying BCO shares after they reach a recent peak and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 7.98%. While the strategy captured some upside, it also experienced volatility, highlighting the importance of considering longer investment horizons or adjusting the holding period based on market conditions and fundamental factors.

The Brink's Co reported strong organic revenue growth of 6% in the first quarter of 2025, driven by significant growth in ATM managed services and digital retail solutions, both exceeding 20% for the fourth consecutive quarter. The company's adjusted EBITDA reached $215 million with a margin of 17.2%, and EPS was reported at $1.62, beating estimates. Share repurchases amounted to 1.3 million shares, and the company announced a third consecutive annual dividend increase.

Despite currency headwinds from Latin America affecting revenue negatively, Brink's affirmed its full-year framework, expecting mid-single-digit organic growth and EBITDA margin expansion. The company's robust Q1 results, with revenue reaching the upper end of its guidance range, contributed positively to its stock performance.