Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at CoreCivic (NYSE:CXW) and the best and worst performers in the safety & security services industry.
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 5 safety & security services stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 2.7% 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 1.2% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 7.3%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS estimates.
Damon T. Hininger, CoreCivic's Chief Executive Officer, commented, "Ongoing demand for the solutions we provide, particularly from U.S. Immigration and Customs Enforcement (ICE), contributed to a solid third quarter. Despite the prolonged federal government shutdown, as law enforcement is an essential government service, our detention populations and our revenues have been unaffected by the shutdown. We expect detainee populations to continue to grow as ICE implements its interior enforcement plan, contributing to a strong 2025. The recently announced contract awards at four facilities negatively impact our financial guidance for the fourth quarter for start-up expenses related to these contracts, but these new contracts are expected to drive our 2026 results even stronger, when we expect these facilities to achieve stabilized occupancy. Following these activations, we have five remaining idle facilities containing over 7,000 beds."
CoreCivic achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 0.5% since reporting and currently trades at $18.10.
Read our full report on CoreCivic here, it’s free for active Edge members.
Best Q3: 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, outperforming analysts’ expectations by 1.1%. The business had a strong quarter with a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $163.58.
Is now the time to buy MSA Safety? Access our full analysis of the earnings results here, it’s free for active Edge members.
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, exceeding analysts’ expectations by 2.5%. Still, it was a slower quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EPS guidance for next quarter estimates.
As expected, the stock is down 3.3% since the results and currently trades at $16.25.
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 $405.3 million, up 7.5% year on year. This number beat analysts’ expectations by 2.6%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
The stock is up 5.2% since reporting and currently trades at $78.74.
Read our full, actionable report on Brady 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 met analysts’ expectations. Zooming out, it was a mixed quarter as it also logged 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 6.5% since reporting and currently trades at $112.76.
Read our full, actionable report on Brink's here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem 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.