Geo Group Sees Sequentially Lower Earnings In Q3; Updates FY23 Outlook - Update

(RTTNews) - While reporting weak profit and slightly higher revenues in the second quarter, GEO Group, Inc. (GEO), a diversified government service provider, issued outlook for its third and fourth quarters, and updated fiscal 2023 forecast.

For the third quarter, the company expects net income to be between $19 million and $26 million on quarterly revenues of $588 million to $603 million. Adjusted EBITDA is expected to be in a range of $115 million to $130 million.

On average, three analysts polled by Thomson Reuters expect revenues of $612.57 million for the quarter. Analysts' estimates typically exclude special items.

For the fourth quarter, net income is projected to be between $19 million and $27 million on quarterly revenues of $595 million to $610 million. Adjusted EBITDA would be in a range of $115 million to $130 million.

Further, the company updated full-year 2023 guidance to reflect its updated expectations regarding the timing of participant levels under the U.S. Department of Homeland Security's Intensive Supervision and Appearance Program or ISAP.

For the year, the company projects net income to be between $95 million and $110 million, on annual revenues of approximately $2.4 billion. Full-year 2023 Adjusted EBITDA is expected to be between $490 million and $520 million.

For the full year, the company previously expected revenues between $2.38 billion and $2.46 billion.

The Street is looking for revenues of $2.43 billion for the year.

In the second quarter, GEO Group's profit decreased from the same period last year but beat the Street estimates.

The company's earnings came in at $29.57 million, or $0.20 per share. This compares with $53.73 million, or $0.37 per share, in last year's second quarter.

Excluding items, GEO Group reported adjusted earnings of $29.15 million or $0.24 per share for the period.

Analysts expected the company to earn $0.20 per share.

The company's revenue for the quarter rose 1.0% to $593.89 million from $588.18 million last year.

In pre-market activity on the NYSE, Geo Group shares were losing around 2.5 percent to trade at $7.10.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.