GEO Group Updates Q4, FY Outlook

(RTTNews) - GEO Group Inc. (GEO) updated its financial guidance for the fourth quarter 2018 and full-year 2018. For the fourth quarter 2018, GEO expects total revenues to be in a range of $587 million to $592 million. GEO expects fourth quarter 2018 Net Income Attributable to GEO to be in a range of $0.32 to $0.34 per share.

GEO's fourth quarter guidance reflects approximately $0.01 per share in close-out expenses related to the consolidation of populations into GEO's larger reentry facilities in Pennsylvania, resulting in the idling of smaller underperforming assets, and approximately $0.02 per diluted share in losses associated with the damage caused by Hurricane Michael to the GEO-managed Bay Correctional Facility in Florida, for which GEO expects to receive insurance reimbursement proceeds in 2019.

Excluding these items, GEO provided fourth quarter 2018 guidance for Adjusted Net Income in a range of $0.35 to $0.37 per share. GEO also confirmed its fourth quarter 2018 guidance for AFFO in a range of $0.65 to $0.67 per diluted share.

Previously, the company expected total revenues For the fourth quarter 2018 to be in a range of $595 million to $600 million. GEO expects fourth quarter 2018 Net Income Attributable to GEO to be in a range of $0.35 to $0.37 per diluted share. GEO expects fourth quarter 2018 AFFO to be in a range of $0.65 to $0.67 per diluted share.

For the full-year 2018, GEO now expects Net Income Attributable to GEO to be in a range of $1.25 to $1.27 per share; Adjusted Net Income to be in a range of $1.35 to $1.37 per share; and AFFO to be in a range of $2.47 to $2.49 per share. GEO still expects full-year 2018 revenue to be approximately $2.3 billion.

Previously, GEO expected full-year 2018 Net Income Attributable to GEO to be in a range of $1.27 to $1.31 per diluted share. GEO expects full-year 2018 Adjusted Net Income to be in a range of $1.32 to $1.36 per share. GEO expects full-year 2018 AFFO to be in a range of $2.47 to $2.51 per share.