Wednesday, May 04, 2022
The GEO Group (GEO)
1Q22 Results Above Expectations
The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
1Q22 Results. The GEO Group’s 1Q22 results were above expectations, with revenue for the quarter of $551.2 million, adjusted EBITDA of $125.2 million, AFFO of $0.64 per diluted share, EPS of $0.26, and adjusted net income of $0.31 per share. We had forecast $550 million, $98.5 million, $0.50, $0.20, and $0.21, respectively. GEO’s results highlight the resiliency of the business model, in our opinion.
BI Building. GEO’s BI monitoring subsidiary remains strong. BI now monitors over 200,000 people under the ISAP program, up from about 90,000 18 months ago. As we mentioned in a previous report, ICE is preparing for up to 600,000 enrollees in its ATD programs by year-end, up from 215,000 enrolled today. As the largest purveyor of ATD solutions to the government, such a surge should benefit GEO, in our view….
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.