Since the end of last year, stakeholders in correctional facilities manager Geo Group
The company's Q1 2007 pro forma income from continuing operations increased 84% to $9 million, or $0.43 per share, from $4.9 million, or $0.32 per share, in Q1 2006. Q1 revenues increased by 28% year over year, and Geo management has upped its estimate for full-year pro forma earnings to between $2.02 and $2.15 per share, from previously issued guidance of $1.90 to $2.05 per share.
Geo Group stands to benefit from crowded prison populations in many areas of the country, as state and local governments turn to private correctional-facility operators to meet excess demand. Management attributed its revenue growth in Q1 to new contract wins by each of its operating segments. The company continues to develop new facilities that will begin operations in the upcoming quarters to further aid future revenue growth.
The prison sector has favored investors recently, with Corrections Corporation of America
Should investors keep their dollars locked up in Geo? If nothing else, it certainly beats being a customer.