GEO Group (GEO) Tops Q1 EPS by 5c, Revenues Beat; Affirms Q2 & FY19 EPS/Revenue Guidance Above Consensus

GEO Group (NYSE: GEO) reported Q1 EPS of $0.35, $0.05 better than the analyst estimate of $0.30. Revenue for the quarter came in at $610.67 million versus the consensus estimate of $601.59 million.

• Net Income Attributable to GEO of $40.7 million or $0.34 per diluted share
• Adjusted Net Income of $0.35 per diluted share
• Net Operating Income of $161.8 million
• Normalized FFO of $0.50 per diluted share
• AFFO of $0.67 per diluted share

George C. Zoley, Chairman and Chief Executive Officer of GEO, said, “We are pleased with our strong quarterly financial and operational performance, as well as, our improved outlook for the balance of the year. We have taken important steps to reactivate our idle capacity, and we are proud of the continued success of our GEO Continuum of Care enhanced rehabilitation and post-release programs. We remain focused on effectively allocating capital to enhance long-term value for our shareholders, and we believe we will continue to have access to cost-effective capital to support the growth and expansion of our high-quality services.”

GUIDANCE:

GEO Group sees FY2019 EPS of $1.44-$1.50, versus the consensus of $1.33. GEO Group sees FY2019 revenue of $2.47 billion, versus the consensus of $2.42 billion.

GEO Group sees Q2 2019 EPS of $0.36-$0.38, versus the consensus of $0.33. GEO Group sees Q2 2019 revenue of $607-612 million, versus the consensus of $602.88 million.

• GEO updated its initial financial guidance for the full-year and issued financial guidance for the second quarter 2019.
• GEO expects full-year 2019 total revenue to be approximately $2.47 billion. GEO expects full-year 2019 Net Income Attributable to GEO to be in a range of $1.42-$1.48 per diluted share and Adjusted Net Income to be in a range of $1.44-$1.50 per diluted share.
• GEO expects full-year 2019 AFFO to be in a range of $2.64-$2.70 per diluted share and Adjusted EBITDAre to be in a range of $482.5 million to $489.5 million.
• GEO’s updated full-year 2019 guidance reflects the recently announced reactivation of GEO’s 1,000-bed South Louisiana ICE Processing Center during the third quarter of 2019. Full-year 2019 guidance does not assume the reactivation of GEO’s approximately 4,000 remaining idle beds or any additional share repurchases under GEO’s share repurchase program.
• For the second quarter 2019, GEO expects total revenues to be in a range of $607 million to $612 million. GEO expects second quarter 2019 Net Income Attributable to GEO to be in a range of $0.35 to $0.37 per diluted share and Adjusted Net Income to be in a range of $0.36 to $0.38 per diluted share. GEO expects second quarter 2019 AFFO to be in a range of $0.65 to $0.67 per diluted share.

For earnings history and earnings-related data on GEO Group (GEO) click here.

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