Friday, October 30, 2020
The GEO Group, Inc. (GEO)
Another Solid Quarter in the Face of Covid Challenges
With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3Q20 Results. GEO reported third quarter revenue of $579.1 million, EPS of $0.33, and AFFO of $0.67 per share. In the same period last year, the Company reported revenue of $631.6 million, EPS of $0.39, and AFFO of $0.72. While above management expectations, results continue to be negatively impacted by the COVID crisis, which reduced populations and increased costs. We had estimated revenue of $580 million, EPS of $0.27, and AFFO of $0.60.
New Awards. In spite of COVID and political rhetoric, GEO continues to receive new awards. Interestingly, the BoP reversed its stance to close the D. Ray James facility by the end of September and instead entered into a four month extension with GEO. The USMS is taking over the Eagle Pass facility. An ICE annex was activated in the third quarter, another will be activated in the fourth and …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.