Private corrections company GEO Group (NYSE: GEO) will be reporting earnings this Thursday before the bell. Here’s what investors should know.
GEO Group beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $682.3 million, up 13.1% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EPS guidance for next quarter estimates.
Is GEO Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting GEO Group’s revenue to grow 10.1% year on year to $669.1 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GEO Group has missed Wall Street’s revenue estimates three times over the last two years.
Looking at GEO Group’s peers in the business services & supplies segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Tetra Tech’s revenues decreased 13.4% year on year, beating analysts’ expectations by 6.4%, and UniFirst reported revenues up 2.7%, topping estimates by 1%. Tetra Tech traded up 3% following the results while UniFirst’s stock price was unchanged.
Read our full analysis of Tetra Tech’s results here and UniFirst’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the business services & supplies stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.6% on average over the last month. GEO Group is down 5.6% during the same time and is heading into earnings with an average analyst price target of $32.25 (compared to the current share price of $16.33).
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