Geo Group (NYSE:GEO) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Geo Group (NYSE:GEO) issued its quarterly earnings results on Thursday. The real estate investment trust reported $0.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.22 by $0.03, Zacks reports. The firm had revenue of $682.34 million during the quarter, compared to the consensus estimate of $665.81 million. Geo Group had a net margin of 3.69% and a return on equity of 7.26%. The business’s revenue was up 13.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.21 EPS. Geo Group updated its FY 2025 guidance to 1.810-1.850 EPS and its Q4 2025 guidance to 0.230-0.270 EPS.

Geo Group Price Performance

GEO stock traded down $0.28 during trading on Friday, hitting $15.13. The company had a trading volume of 2,755,931 shares, compared to its average volume of 2,902,185. The company has a fifty day moving average price of $19.22 and a two-hundred day moving average price of $23.19. Geo Group has a fifty-two week low of $14.27 and a fifty-two week high of $36.46. The company has a market cap of $2.14 billion, a P/E ratio of 23.27, a P/E/G ratio of 1.87 and a beta of 0.67. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.07.

Geo Group declared that its Board of Directors has initiated a share buyback program on Wednesday, August 6th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the real estate investment trust to purchase up to 8.2% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On Geo Group

Several institutional investors and hedge funds have recently made changes to their positions in the company. Geneos Wealth Management Inc. increased its position in shares of Geo Group by 245.1% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,101 shares of the real estate investment trust’s stock worth $26,000 after purchasing an additional 782 shares in the last quarter. NewEdge Advisors LLC grew its stake 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 worth $54,000 after buying an additional 839 shares during the last quarter. Militia Capital Partners LP grew its stake in Geo Group by 122.6% during the second quarter. Militia Capital Partners LP now owns 6,900 shares of the real estate investment trust’s stock worth $165,000 after buying an additional 3,800 shares during the last quarter. United Services Automobile Association acquired a new stake in shares of Geo Group during the first quarter worth approximately $260,000. Finally, Alamea Verwaltungs GmbH raised its stake in shares of Geo Group by 107.4% in the second quarter. Alamea Verwaltungs GmbH now owns 14,421 shares of the real estate investment trust’s stock valued at $345,000 after acquiring an additional 7,468 shares during the last quarter. Institutional investors and hedge funds own 76.10% of the company’s stock.

Analysts Set New Price Targets

GEO has been the subject of several research reports. Weiss Ratings reiterated a “hold (c-)” rating on shares of Geo Group in a research note on Friday, October 31st. Wall Street Zen cut Geo Group from a “buy” rating to a “hold” rating in a report on Saturday. Finally, Jones Trading decreased their price objective on Geo Group from $50.00 to $37.00 and set a “buy” rating on the stock in a report on Friday. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Geo Group has a consensus rating of “Moderate Buy” and a consensus target price of $35.00.

About Geo Group

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.