Private corrections company GEO Group (NYSE:GEO) will be reporting results this Thursday morning. Here’s what to look for.
GEO Group beat analysts’ revenue expectations last quarter, reporting revenues of $732.1 million, up 15.1% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EPS guidance for next quarter estimates.
Is GEO Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting GEO Group’s revenue to grow 12.7% year on year, in line with the 13.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. GEO Group has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at GEO Group’s peers in the business services & supplies segment, some have already reported their Q3 results, giving us a hint as to what we can expect. MSA Safety delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 0.7%, and UniFirst reported revenues up 5%, topping estimates by 1.7%. MSA Safety traded down 6.9% following the results while UniFirst was up 4.6%.
Read our full analysis of MSA Safety’s results here and UniFirst’s results here.
Investors in the business services & supplies segment have had steady hands going into earnings, with share prices flat over the last month. GEO Group is down 15.4% during the same time and is heading into earnings with an average analyst price target of $39 (compared to the current share price of $27.35).
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