The 10-second takeaway
For the quarter ended Sep. 30 (Q3), GEO Group met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins grew, net margins dropped.
GEO Group notched revenue of $411.5 million. The six analysts polled by S&P Capital IQ looked for a top line of $413.3 million on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $406.8 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 $0.42. The six earnings estimates compiled by S&P Capital IQ anticipated $0.42 per share. GAAP EPS of $0.25 for Q3 were 26% lower than the prior-year quarter's $0.34 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 25.7%, 130 basis points better than the prior-year quarter. Operating margin was 13.3%, 70 basis points better than the prior-year quarter. Net margin was 3.8%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $416.1 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $1.65 billion. The average EPS estimate is $1.57.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GEO Group is outperform, with an average price target of $29.79.
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