Private corrections company GEO Group (NYSE: GEO) will be reporting earnings this Wednesday before the bell. Here’s what investors should know.
GEO Group missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $604.6 million, flat year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS guidance for next quarter estimates and a significant miss of analysts’ EPS estimates.
Is GEO Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting GEO Group’s revenue to grow 2.7% year on year to $623.4 million, in line with the 2.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GEO Group has missed Wall Street’s revenue estimates three 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 2.5%, beating analysts’ expectations by 5.9%, and HNI reported revenues up 7%, topping estimates by 3.2%. HNI’s stock price was unchanged following the results.
Read our full analysis of MSA Safety’s results here and HNI’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the business services & supplies stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.1% on average over the last month. GEO Group is down 5.6% during the same time and is heading into earnings with an average analyst price target of $41.80 (compared to the current share price of $24.99).
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