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Why GEO Group Trading Down Over 8% - Update

(Adds Outlook, stock movement)

Looking ahead, for the second-quarter, GEO Group, Inc. (GEO) expects a net loss. And For the full year, it revised down annual earnings outlook.

The guidance for both the periods reflects an $86 million loss on extinguishment of debt, pre-tax, as a result of refinancing transactions in the second quarter.

For the second quarter, the company expects net loss of $27 million to $30 million. Revenue for the period is seen in the range of $600 million to $610 million, in line with the analysts' estimate of $608.85 million.

For the full year, the Group now expects profit of $55 million to $75 million, lower than its earlier outlook of $110 million to $125 million Annual revenue is reaffirmed at around $2.4 billion, below analysts' forecast of $2.45 billion.

GEO was trading down by 8.52 percent at $13.20 in the pre-market trade in New York.

Q1 Results:

GEO Group released earnings for first quarter that decreased from the same period last year and also missed the Street estimates.

The company's bottom line came in at $22.668 million, or $0.14 per share. This compares with $28.003 million, or $0.19 per share, in last year's first quarter.

Excluding items, The GEO Group Inc. reported adjusted earnings of $23.628 million or $0.18 per share for the period.

Analysts on average had expected the company to earn $0.19 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter fell 0.4% to $605.672 million from $608.209 million last year.

The GEO Group Inc. earnings at a glance (GAAP) :

-Earnings (Q1): $22.668 Mln. vs. $28.003 Mln. last year.
-EPS (Q1): $0.14 vs. $0.19 last year.
-Revenue (Q1): $605.672 Mln vs. $608.209 Mln last year.

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