Well, crime might not pay for taxpayers or the inmates at GEO Group
For its Q2, the prison operator reported a 13% increase in pro forma EPS from continuing operations, and revenue increased 24% on a year-over-year basis. Management attributed these sizable gains to new contracts, as well as better-than-expected performance from several of GEO's facilities. It was also prompted to increase its full-year forecast slightly.
I believe the prison stocks continue to be attractive investments. On Monday, Corrections Corp. of America
GEO Group continues to barrel forward with expansion. As of Dec. 31, it had 54,000 beds under management, with an average occupancy rate of 96%. Due to the bustling demand from government contracts, the company has ongoing projects that, once completed, will increase its capacity by about 20%. The company will have no difficulty filling these beds, because it recently won contracts in Louisiana and Texas, demonstrating the push for more housing for immigration detainees along the U.S. border.
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