The 10-second takeaway
For the quarter ended April 1 (Q1), GEO Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.
Margins shrank across the board.
GEO Group booked revenue of $412.3 million. The six analysts polled by S&P Capital IQ predicted a top line of $409.7 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $391.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.31. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.30 per share. GAAP EPS of $0.25 for Q1 were 3.8% lower than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.6%, 100 basis points worse than the prior-year quarter. Operating margin was 10.3%, 10 basis points worse than the prior-year quarter. Net margin was 3.6%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $415.5 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $1.52.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GEO Group is outperform, with an average price target of $24.93.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.