Brink's Cuts 2015 Earnings Outlook - Quick Facts

(RTTNews) - The Brink's Company (BCO) announced that it has reduced its earnings outlook for 2015 and adjusted its 2016 earnings guidance to the lower end of its previously disclosed range. The company said its management will discuss the company's strategy to improve operating and financial performance at its Investor Day meeting today in New York.

The company expects full-year 2015 non-GAAP earnings to be between $1.40 and $1.50 per share, compared to its previous estimate of $1.55 to $1.75. Revenue guidance for 2015 was unchanged at approximately $3 billion. The company cited its expectation of lower operating results in the U.S., weak economic conditions in Brazil, and the ongoing effect of negative currency translation as primary factors in its decision to reduce 2015 guidance. Analysts polled by Thomson Reuters expect the company to report earnings of $1.54 per share and revenues of $3.01 billion for fiscal year 2015. Analysts' estimates typically exclude special items.

Brink's adjusted its 2016 non-GAAP earnings outlook to the lower end of its previously disclosed range of $2.00 to $2.40 per share. Non-GAAP earnings in 2016 are now expected to be between $2.00 and $2.20 per share. Revenue guidance for 2016 was reduced from $3.4 billion to $3 billion. Wall Street currently is looking for fiscal year 2016 earnings of $1.98 per share on annual revenues of $3.18 billion.

The change in 2016 earnings and revenue guidance reflected management's expectation of continued economic weakness in Brazil and currency headwinds. Brink's continues to expect its U.S. operations to achieve its previously disclosed operating margin target of 6% in 2016.

Tom Schievelbein, chairman, president and chief executive officer, said, "We are continuing to execute on our strategy to differentiate our service offerings, reduce costs, exit unprofitable markets, and drive a change in our culture. While currency headwinds have continued to impact our results, we have made operational changes that we believe will position us to deliver sustainable growth in shareholder value. We believe our focus on executing turnarounds in the U.S. and Mexico, coupled with medium-term growth drivers from higher-value services, will drive value for Brink's shareholders."