Geo Group (NYSE:GEO) Issues FY 2025 Earnings Guidance

Key Points

• Geo Group updated its FY 2025 earnings guidance, projecting EPS between 0.840-0.940, below the consensus estimate of 0.949, while maintaining revenue guidance of $2.6 billion.
• The company's stock fell 2.1% to $22.40, with a market capitalization of $3.17 billion and an average price target of $38.00 from analysts.
• Geo Group initiated a stock buyback program authorizing the repurchase of $300 million in shares, indicating the board's belief that the stock is undervalued.

Geo Group (NYSE:GEO - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.840-0.940 for the period, compared to the consensus estimate of 0.949. The company issued revenue guidance of $2.6 billion-$2.6 billion, compared to the consensus revenue estimate of $2.6 billion. Geo Group also updated its Q3 2025 guidance to 0.200-0.230 EPS.

Geo Group Trading Down 0.8%

NYSE GEO traded down $0.18 during mid-day trading on Friday, reaching $21.32. 5,013,659 shares of the stock were exchanged, compared to its average volume of 3,461,559. The stock has a market cap of $3.02 billion, a P/E ratio of 32.80, a P/E/G ratio of 2.42 and a beta of 0.75. The stock has a 50 day simple moving average of $25.04 and a 200-day simple moving average of $27.07. The company has a debt-to-equity ratio of 1.07, a current ratio of 0.90 and a quick ratio of 1.29. Geo Group has a one year low of $11.75 and a one year high of $36.46.

Geo Group (NYSE:GEO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The real estate investment trust reported $0.22 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.06. Geo Group had a net margin of 3.69% and a return on equity of 7.26%. The firm had revenue of $636.17 million during the quarter, compared to the consensus estimate of $621.55 million. During the same period in the previous year, the firm posted $0.23 earnings per share. The business's revenue was up 4.8% compared to the same quarter last year. On average, analysts anticipate that Geo Group will post 0.83 EPS for the current year.

Geo Group announced that its Board of Directors has approved a share buyback plan on Wednesday, August 6th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the real estate investment trust to reacquire up to 8.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

GEO has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Geo Group from a "sell" rating to a "hold" rating in a research note on Friday, May 9th. Jones Trading decreased their target price on shares of Geo Group from $50.00 to $45.00 and set a "buy" rating for the company in a research report on Thursday. Finally, Wedbush reissued an "outperform" rating and set a $36.00 price objective on shares of Geo Group in a report on Monday, June 23rd. One research analyst has rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $37.00.

Institutional Trading of Geo Group

Several institutional investors have recently made changes to their positions in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Geo Group by 168.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 284,975 shares of the real estate investment trust's stock worth $8,324,000 after purchasing an additional 178,622 shares in the last quarter. United Services Automobile Association bought a new position in Geo Group in the 1st quarter valued at $260,000. NewEdge Advisors LLC grew its position in Geo Group by 81.9% during the first quarter. NewEdge Advisors LLC now owns 1,864 shares of the real estate investment trust's stock valued at $54,000 after buying an additional 839 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Geo Group by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 75,766 shares of the real estate investment trust's stock valued at $2,213,000 after buying an additional 3,309 shares during the period. Institutional investors own 76.10% of the company's stock.

Geo Group Company Profile

The GEO Group, Inc NYSE: GEO engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects.