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Spotting Winners: MSA Safety (NYSE:MSA) And Safety & Security Services Stocks In Q4

MSA Cover Image

Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at 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 strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.

While some safety & security services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% 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 $510.9 million, up 2.2% year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

MSA Safety Total Revenue

MSA Safety delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 1.5% since reporting and currently trades at $193.85.

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

Best Q4: 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 $604 million, up 26% year on year, outperforming analysts’ expectations by 6%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

CoreCivic Total Revenue

CoreCivic scored the biggest analyst estimates beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $18.33.

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

Weakest Q4: 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 $707.7 million, up 16.5% year on year, exceeding analysts’ expectations by 5.8%. Still, it was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ full-year EPS guidance estimates.

As expected, the stock is down 6.4% since the results and currently trades at $14.81.

Read our full analysis of GEO Group’s results here.

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 $384.1 million, up 7.7% year on year. This print topped analysts’ expectations by 1.5%. Aside from that, it was a mixed quarter as it underperformed in some other aspects of the business.

The stock is down 5.1% since reporting and currently trades at $90.36.

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

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 $1.38 billion, up 9.1% year on year. This number surpassed analysts’ expectations by 1.8%. It was a very strong quarter as it also recorded revenue guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ revenue estimates.

The stock is down 7.2% since reporting and currently trades at $125.80.

Read our full, actionable report on Brink's here, it’s free.


Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

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