How The Brink's Company Secured Big Gains Today

How The Brink's Company Secured Big Gains Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of The Brink's Company jumped as much as much as 11% today after reporting earnings, though they gave up most of those gains in late trading.

So what: Third-quarter revenue rose 6% to $1.0 billion, and net income from continuing operations jumped 46% to $31 million, or $0.63 per share. On a non-GAAP basis, which is what analysts use for comparison, earnings were $0.69 per share, well ahead of the $0.49 per share analysts expected.

Now what: Management said that international operations drove the strong profit growth, especially growth in Venezuela. The U.S. market was actually a drag on results, contributing no revenue growth and seeing operating profit decline 92% in the quarter. This is the third straight quarter Brink's has beaten expectations, and, with shares trading at just 13 times next year's estimates, I think there's upside in the stock.

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