Stocks in Motion: Brink's
Updated from 1:35 p.m. EDT
Shares of Brink's (BCO) were among the NYSE's losers Wednesday after the company posted weaker-than-expected second-quarter earnings and warned that an investigation may force it to restate those same second-quarter earnings results.
The security services company earned 25 cents a share on sales of $1.1 billion. Analysts polled by Thomson First Call had expected it to earn 34 cents a share on sales of $1.1 billion.
Brink's said it recently discovered that one of its overseas business units has not paid about $3 million in foreign duties and value-added taxes during the normal course of its operations. It has been advised by counsel that it could face civil and criminal penalties as a result of its nonpayment of those taxes and duties.While the company has not been notified by any governmental authorities, Brink's said that it could face up to $85 million in penalties and fees if the company were ever assessed against the overseas business unit. Brink's has begun to implement changes that will prevent this kind of event from happening again in the future, it said. Shares of Brink's traded down $4.73, or 14.8%, to $27.32. Homestore (HOMS) fell after it reported weaker-than-expected second-quarter financial results. Excluding items, the online real estate company posted a loss of 2 cents a share on sales of $56.8 million. Analysts were looking for a loss of a penny on sales of $58.1 million. Shares of Homestore traded down 50 cents, or 14.7%, to $2.90. Shares of ValueClick (VCLK) fell after the company reported mixed second-quarter financial results and warned that third-quarter results would fall short of expectations. The Internet marketing company posted a profit of 7 cents a share during the second quarter on sales of $34.6 million. Analysts had expected it to earn 6 cents a share on sales of $36.4 million. Looking ahead, it expects third-quarter earnings of 6 cents a share on sales of $36 million to $37 million. Analysts were expecting 7 cents a share on sales of $37.2 million. Shares of ValueClick traded down $2.63, or 26.9%, to $7.16.
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