logo
  

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.

For comments and feedback contact: editorial@rttnews.com

Business News

Invest in the Best Biotech Stocks by Subscribing to RTT Biotech Investor.

The highlight this week was the latest set of first quarter economic growth figures from the U.S. Find out why the data damped the market sentiment. Other main releases from the U.S. included those on consumer confidence and jobless claims. In Europe, German inflation figures caught everyone's attention. Learn why it added to expectations of rate staying “higher for longer”. Asia's economics scene this week was dominated by the release of PMI survey figures from China.

View More Videos
Follow RTT