GEO Q4 Profit Beats Estimates; Issues Q1, FY24 Outlook; Stock Up In Pre-market

(RTTNews) - Government service provider GEO Group, Inc. (GEO), while reporting weak fourth-quarter profit but above market estimates, on Thursday issued outlook for first quarter and fiscal 2024.

In pre-market activity on the NYSE, GEO shares were gaining around 4.1 percent to trade at $11.56.

For the first quarter of 2024, GEO expects net income to be in a range of $22 million to $24 million and quarterly revenues in a range of $600 million to $610 million.

Adjusted EBITDA is expected to be in a range of $117 million to $122 million.

For fiscal 2024, the company expects net income in a range of $110 million to $125 million on annual revenues of approximately $2.4 billion. Adjusted EBITDA is expected to be between $485 million and $515 million.

In fiscal 2023, net income was $113.8 million, total revenues were $2.41 billion and adjusted EBITDA was $507.2 million.

Analysts on average expect the company to report revenues of $605.35 million for the first quarter and $2.48 billion for the year, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

In its fourth quarter, GEO's earnings decreased from the same period last year but beat the Street estimates.

The company's earnings totaled $31.89 million, or $0.21 per share. This compares with $41.53 million, or $0.28 per share, in last year's fourth quarter.

Adjusted earnings were $36.58 million or $0.29 per share for the period. Analysts had expected the company to earn $0.18 per share.

The company's revenue for the quarter fell 2.0% to $608.28 million from $620.68 million last year.

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