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Geo Group Q3 revenue misses estimates

By Reuters News


Overview

  • U.S. secure facility operator's Q3 revenue rose 12% yr/yr but missed analyst expectations

  • Company expanded share repurchase program by $750 mln to $1.25 bln


Outlook

  • Geo Group raises FY26 net income guidance to $726.3 mln-$730.5 mln

  • Company expects FY26 revenue of $2.975 bln-$3.025 bln

  • Geo Group expects FY26 adjusted net income of $185 mln-$190 mln, or $1.40-$1.44 per share


Result Drivers

  • NEW CONTRACTS - Co said significant revenue growth was driven by new or expanded contracts entered into in 2025 and 2026

  • ONE-TIME COSTS - Q3 results included $3.5 mln in non-cash and one-time costs, including litigation and restructuring expenses


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$761.10 mln

$783.08 mln (5 Analysts)

Q3 EPS

$0.37

Q3 Net Income

$49.20 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy"

  • Wall Street's median 12-month price target for The GEO Group, Inc. is $40.00, about 45.3% above its November 4 closing price of $27.53

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 21 three months ago


Reuters Recommended Reads

  • Nov 4 - Private prison operator CoreCivic's Q3 revenue beats; additional $500 mln buyback announced


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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