Tuesday, May 11, 2021

The GEO Group, Inc. (GEO)
Better-Than-Expected First Quarter Results

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.

1Q21 Results. The GEO Group reported first quarter 2021 net income of $50.5 million, or $0.41 per diluted share, compared to $25.2 million, or $0.21 per diluted share, for the first quarter 2020. Total revenue for the first quarter 2021 was $576.4 million compared to $605.0 million in the same period last year. GEO reported adjusted net income of $34.1 million, or $0.28 per diluted share, compared to $28.8 million, or $0.24 per diluted share, for the first quarter 2020. We had projected revenue of $579 million and EPS of $0.20.


Favorable Cost Trends.  The quarter adjusted EPS beat was driven by favorable cost trends, especially in the Secure Services business, reflecting lower y-o-y populations. G&A as a percent of revenue fell to 8.41% from 8.89%, while operating costs as a percent of revenue dropped to…

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.