GEO Group Issues Q3, Q4 Outlook; Updates FY24 View; Stock Up In Pre-market

(RTTNews) - GEO Group, Inc. (GEO), a diversified government service provider, on Wednesday issued outlook for third quarter as well as fourth quarter, and updated fiscal 2024 guidance. This was after reporting a loss in its second quarter, compared to prior year's profit, despite revenue growth.

In pre-market activity on the NYSE, GEO shares were gaining around 2.6 percent to trade at $13.16.

Looking ahead for the third quarter, the company expects net income attributable to be in a range of $0.21 to $0.25 per share, adjusted EBITDA in a range of $123 million to $130 million, and revenues in a range of $606 million to $616 million.

Analysts on average expect the company to report earnings of $0.26 per share on revenues of $612.15 million, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

For the fourth quarter, the company estimates net income attributable of $0.22 to $0.29 per share, adjusted EBITDA of $125 million to $138 million, and revenues of $611 million to $621 million.

Further, for fiscal 2024, the company now projects earnings in a range of $0.40 to $0.51 per share, adjusted net income of $0.82 to $0.93 per share on revenues of around $2.44 billion.

Geo previously expected net income of $55 million to $75 million, and revenue at around $2.4 billion.

The Street is looking for earnings of $0.90 per share on revenues of $2.44 billion.

Adjusted EBITDA for the year is now expected to be between $485 million and $505 million, compared to previously expected $485 million to $515 million.

In its second quarter, GEO Group reported a net loss attributable to GEO of $32.5 million or $0.25 per share, compared to net income of $29.6 million or $0.20 per share last year.

Adjusted net income was $30.1 million or $0.23 per share, compared to $29.2 million or $0.24 per share a year ago.

Total revenues for the quarter were $607.19 million, higher than last year's $593.9 million.

Analysts projected earnings of $0.16 per share on revenues of $607.59 million.

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