The 10-second takeaway
For the quarter ended March 31 (Q1), GEO Group met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Gross margins expanded, operating margins contracted, net margins grew.
GEO Group tallied revenue of $377.0 million. The four analysts polled by S&P Capital IQ expected to see sales of $379.4 million on the same basis. GAAP reported sales were 6.0% lower than the prior-year quarter's $401.3 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 $0.38. The five earnings estimates compiled by S&P Capital IQ averaged $0.38 per share. Non-GAAP EPS of $0.38 for Q1 were 23% higher than the prior-year quarter's $0.31 per share. GAAP EPS of $0.33 for Q1 were 38% higher than the prior-year quarter's $0.24 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 25.5%, 140 basis points better than the prior-year quarter. Operating margin was 10.9%, 60 basis points worse than the prior-year quarter. Net margin was 6.2%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $383.7 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $1.53 billion. The average EPS estimate is $1.72.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GEO Group is outperform, with an average price target of $40.33.
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