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Safety & Security Services Stocks Q3 In Review: MSA Safety (NYSE:MSA) Vs Peers

MSA Cover Image

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the safety & security services industry, including MSA Safety (NYSE: MSA) and its peers.

Rising concerns over physical security, cybersecurity threats, and workplace safety regulations will present opportunities for companies in this sector. AI and digitization will enhance surveillance, access control, and threat detection, which could benefit key players in Safety & Security Services. These trends could also introduce ethical and regulatory concerns over data privacy and automated decision-making in security operations, giving rise to headline risks. Finally, increasing scrutiny on private security practices and evolving criminal justice policies again mean that companies in the space need to operate with the utmost care or risk being the poster child of abuse of power.

The 6 safety & security services stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3% on average since the latest earnings results.

MSA Safety (NYSE: MSA)

Founded in 1914 as Mine Safety Appliances to protect coal miners from dangerous gases, MSA Safety (NYSE: MSA) designs and manufactures advanced safety products that protect workers and facilities across industries including fire service, energy, construction, and manufacturing.

MSA Safety reported revenues of $468.4 million, up 8.3% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and revenue estimates.

"Our financial performance in the third quarter reflected solid results, demonstrating our continued execution of our Accelerate strategy," said Steve Blanco, President and CEO of MSA Safety.

MSA Safety Total Revenue

Interestingly, the stock is up 3.5% since reporting and currently trades at $168.36.

Is now the time to buy MSA Safety? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Motorola Solutions (NYSE: MSI)

Born from the company that invented the first portable handheld police radio in 1940, Motorola Solutions (NYSE: MSI) provides mission-critical communications, video security, and command center software solutions for public safety agencies and enterprise customers.

Motorola Solutions reported revenues of $3.01 billion, up 7.8% year on year, outperforming analysts’ expectations by 0.6%. The business had a strong quarter with a beat of analysts’ EPS and revenue estimates.

Motorola Solutions Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.2% since reporting. It currently trades at $383.40.

Is now the time to buy Motorola Solutions? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: CoreCivic (NYSE: CXW)

Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE: CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.

CoreCivic reported revenues of $580.4 million, up 18.1% year on year, exceeding analysts’ expectations by 7.3%. Still, it was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

Interestingly, the stock is up 5.3% since the results and currently trades at $19.62.

Read our full analysis of CoreCivic’s results here.

GEO Group (NYSE: GEO)

With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE: GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa.

GEO Group reported revenues of $682.3 million, up 13.1% year on year. This print topped analysts’ expectations by 2.5%. More broadly, it was a slower quarter as it produced revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS guidance for next quarter estimates.

The stock is flat since reporting and currently trades at $16.69.

Read our full, actionable report on GEO Group here, it’s free for active Edge members.

Brink's (NYSE: BCO)

Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE: BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.

Brink's reported revenues of $1.34 billion, up 6.1% year on year. This result was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded revenue guidance for next quarter slightly topping analysts’ expectations but EPS in line with analysts’ estimates.

Brink's had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 13.2% since reporting and currently trades at $119.86.

Read our full, actionable report on Brink's here, it’s free for active Edge members.


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