Private corrections company GEO Group (NYSE:GEO) will be announcing earnings results this Thursday before market open. Here’s what to expect.
GEO Group beat analysts’ revenue expectations last quarter, reporting revenues of $705.2 million, up 16.6% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance 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 13.5% year on year, improving from the 4.8% 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 Q2 results, giving us a hint as to what we can expect. MSA Safety delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 1.2%, and OPENLANE reported revenues up 15.1%, topping estimates by 4.4%. MSA Safety traded up 9.1% following the results.
Read our full analysis of MSA Safety’s results here and OPENLANE’s results here.
There has been positive sentiment among investors in the business services & supplies segment, with share prices up 7.8% on average over the last month. GEO Group is up 4.3% during the same time and is heading into earnings with an average analyst price target of $33.75 (compared to the current share price of $31.01).
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