Geo Group (NYSE:GEO) Shares Gap Up on Earnings Beat

Geo Group Inc (The) (NYSE:GEO)’s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $18.36, but opened at $21.20. Geo Group shares last traded at $21.1850, with a volume of 695,959 shares trading hands.

The real estate investment trust reported $0.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.19 by $0.10. Geo Group had a net margin of 9.67% and a return on equity of 8.36%. The company had revenue of $705.21 million during the quarter, compared to analysts’ expectations of $688.89 million. During the same quarter in the prior year, the company earned $0.14 EPS. The firm’s revenue was up 16.6% on a year-over-year basis. Geo Group has set its FY 2026 guidance at 1.150-1.250 EPS and its Q2 2026 guidance at 0.250-0.290 EPS.

Key Geo Group News

Here are the key news stories impacting Geo Group this week:

• Positive Sentiment: Q1 beat on both EPS and revenue — GEO reported $0.29 EPS (vs. $0.19 est.) and $705.2M revenue (vs. $688.9M est.), showing margin improvement and stronger top-line performance that supports the stock rally. Geo Group (GEO) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Company raised full‑year 2026 guidance — GEO increased FY guidance (EPS range 1.150–1.250) and reiterated growth drivers tied to contracted services and reentry programs, which investors generally view as a constructive signal for cash flow and payout sustainability. The GEO Group Reports First Quarter Results and Increases Full Year 2026 Guidance
• Neutral Sentiment: Q2 guidance is mixed — GEO gave Q2 EPS guidance of $0.250–0.290 (around consensus) but revenue guidance of $715M–$725M which sits slightly below sell‑side revenue expectations (~$727.8M), creating a near‑term execution watchpoint. Investors should monitor the upcoming slide deck and call for detail. View Press Release / Slide Deck
• Negative Sentiment: Reputational/ESG pressure in the sector — a recent report shows customers pulling funds from a bank over ties to ICE-related lending, highlighting political and reputational risks for firms contracting with immigration/detention services; this could lead to increased scrutiny or contracting/financing headwinds for companies like GEO. Citizens Bank customers pull money over lender’s ICE ties

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Geo Group in a research note on Friday, March 27th. Wall Street Zen cut shares of Geo Group from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. Zacks Research raised shares of Geo Group from a “strong sell” rating to a “hold” rating in a research note on Friday, January 9th. Finally, JonesTrading cut their price objective on shares of Geo Group from $37.00 to $33.00 and set a “buy” rating for the company in a research note on Friday, March 20th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $34.50.

Insiders Place Their Bets

In other Geo Group news, Director Scott Michael Kernan sold 6,633 shares of the stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $15.24, for a total transaction of $101,086.92. Following the completion of the sale, the director owned 27,062 shares of the company’s stock, valued at $412,424.88. This represents a 19.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 4.98% of the stock is owned by insiders.

Institutional Investors Weigh In On Geo Group

Institutional investors and hedge funds have recently modified their holdings of the stock. Geneos Wealth Management Inc. lifted its position in shares of Geo Group by 245.1% in 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 during the period. Bessemer Group Inc. increased its stake in shares of Geo Group by 111.9% in the 1st quarter. Bessemer Group Inc. now owns 1,723 shares of the real estate investment trust’s stock worth $29,000 after acquiring an additional 910 shares in the last quarter. IFP Advisors Inc bought a new position in shares of Geo Group in the 4th quarter worth about $30,000. Bayforest Capital Ltd bought a new position in shares of Geo Group in the 4th quarter worth about $37,000. Finally, Daytona Street Capital LLC bought a new position in shares of Geo Group in the 4th quarter worth about $53,000. 76.10% of the stock is owned by hedge funds and other institutional investors.

Geo Group Stock Performance

The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 1.10. The company’s 50 day moving average is $16.73 and its 200-day moving average is $16.40. The company has a market capitalization of $2.82 billion, a P/E ratio of 11.66 and a beta of 0.82.

Geo Group Company Profile

The GEO Group (NYSE:GEO) is a leading provider of correctional, detention and community reentry services to government agencies around the world. As a real estate investment trust, the company specializes in the design, financing, development and operation of secure facilities for adult and juvenile offenders, immigration detainees and individuals requiring mental health treatment or substance abuse programming. GEO’s integrated service model also encompasses electronic monitoring, rehabilitative programming and post-release supervision aimed at reducing recidivism and enhancing public safety.

GEO’s portfolio spans a range of facility types, including medium- and maximum-security correctional institutions, residential reentry centers, mental health treatment units and immigration detention centers.