Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Safety & Security Services Stocks Q2 Earnings: CoreCivic (NYSE:CXW) Best of the Bunch

CXW 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 CoreCivic (NYSE: CXW) and the rest of the safety & security services stocks fared in Q2.

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 very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.3% while next quarter’s revenue guidance was 0.9% below.

In light of this news, share prices of the companies have held steady as they are up 3.9% on average since the latest earnings results.

Best Q2: 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 $538.2 million, up 9.8% year on year. This print exceeded analysts’ expectations by 8.6%. Overall, it was an incredible quarter for the company with a solid beat of analysts’ full-year EPS guidance estimates.

CoreCivic Total Revenue

CoreCivic pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 7.6% since reporting and currently trades at $21.08.

Is now the time to buy CoreCivic? Access our full analysis of the earnings results 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 $474.1 million, up 2.5% year on year, outperforming analysts’ expectations by 5.9%. The business had a stunning quarter with a beat of analysts’ EPS estimates.

MSA Safety Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.8% since reporting. It currently trades at $168.96.

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

Weakest Q2: 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 $636.2 million, up 4.8% year on year, exceeding analysts’ expectations by 2%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and revenue guidance for next quarter missing analysts’ expectations.

GEO Group delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 16.3% since the results and currently trades at $21.63.

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 $397.3 million, up 15.7% year on year. This result topped analysts’ expectations by 2.7%. Overall, it was a strong quarter as it also recorded a decent beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.

Brady pulled off the fastest revenue growth among its peers. The stock is up 3.1% since reporting and currently trades at $80.31.

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 $1.30 billion, up 3.8% year on year. This print beat analysts’ expectations by 2.1%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates.

The stock is up 29.7% since reporting and currently trades at $115.06.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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

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