Q3 Rundown: Brady (NYSE:BRC) Vs Other Safety & Security Services Stocks

BRC Cover Image

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Brady (NYSE: BRC) and the rest of the safety & security services stocks fared in Q3.

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.

Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results.

Brady (NYSE: BRC)

Founded in 1914 and evolving through more than a century of industrial innovation, Brady (NYSE: BRC) manufactures and supplies identification solutions and workplace safety products that help companies identify and protect their premises, products, and people.

Brady reported revenues of $405.3 million, up 7.5% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Commentary:“Our investments in research and development continue to add value for our customers and drive organic sales growth. We reported strong organic sales growth in the Americas & Asia region, and our Europe & Australia region reported a significant improvement in segment profit in the quarter,” said Brady’s President and CEO, Russell R. Shaller.

Brady Total Revenue

Interestingly, the stock is up 17% since reporting and currently trades at $87.58.

Is now the time to buy Brady? Access our full analysis of the earnings results here, it’s free.

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 estimates and a narrow beat of analysts’ 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 6.5% since reporting. It currently trades at $403.70.

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

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 and a significant miss of analysts’ EPS estimates.

The stock is flat since the results and currently trades at $18.46.

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 number topped analysts’ expectations by 2.5%. However, it was a slower quarter as it produced revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EPS guidance for next quarter estimates.

The stock is down 5.5% since reporting and currently trades at $15.89.

Read our full, actionable report on GEO Group here, it’s free.

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 beat analysts’ expectations by 1.1%. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

The stock is up 11.5% since reporting and currently trades at $181.37.

Read our full, actionable report on MSA Safety here, it’s free.


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