The GEO Group, Inc. (GEO) – Better Than Expected 4Q

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Wednesday, February 17, 2021

The GEO Group, Inc. (GEO)
Better Than Expected 4Q

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.

    4Q Results. GEO posted better than expected results for the fourth quarter, exceeding our projections and guidance. Revenue for the quarter was $578.1 million, compared to $621.7 million in 4Q19. Reported net income was $11.9 million, or $0.09 per share, versus $38.1 million, or $0.32 per share last year. Adjusted EPS was $0.33 per share compared to $0.38 last year. NFFO was $0.48 per share compared to $0.53 per share and AFFO was $0.62 per share versus $0.66 last year. We had projected revenue of $575 million, EPS of $0.25, NFFO of $0.45, and AFFO of $0.57. Management had guided to EPS of $0.23-$0.25 and AFFO of $0.55-$0.57.

    What Drove Performance? Better than anticipated expense control as well as higher occupancy levels in some facilities accounted for the guidance beat.  The overall occupancy level rose to 85.2% from 84.9% in the third quarter. While Secure Services occupancy declined to 87% from 91% a year ago, it was up from 85% in the third quarter of 2020. Reported net income was impacted by a number of items …



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. 

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