GEO Issues Q2 View; Cuts FY20 Forecast Due To Covid-19 - Quick Facts

(RTTNews) - REIT specializing in secure facilities GEO Group, Inc. (GEO), while reporting weak first-quarter results on Thursday, issued second-quarter outlook and updated fiscal 2020 forecast due to the impact of Covid-19 pandemic.

For the second quarter, the company expects net income attributable to GEO to be $0.20-$0.24 per share, adjusted net income to be $0.23-$0.27 per share and adjusted funds from operations or AFFO of $0.54 to $0.58 per share.

For fiscal 2020, GEO now expects attributable net income of $0.92 to $1.04 per share, adjusted net income of $1.00 to $1.12 per share and AFFO in a range of $2.25 to $2.35 per share.

The company previously expected attributable net income of $1.27 to $1.37 per share, adjusted net income of $1.37 to $1.47 per share and AFFO in a range of $2.57 to $2.67 per share.

Further, the company now expects full-year 2020 revenues to be approximately $2.38 billion, down from previously expected about $2.48 billion

The company noted that it continued operations as an essential government services provider, but the spread of COVID-19 has negatively impacted a number of its facilities and programs. This is expected to result in lower full-year 2020 revenues, primarily for ICE Processing Centers and U.S. Marshals Service facilities and GEO Reentry Services business.

In pre-market activity, GEO shares were losing around 2.3 percent to trade at $13.