Geo Group (NYSE:GEO) Posts Earnings Results, Beats Estimates By $0.03 EPS

Geo Group (NYSE:GEO) issued its quarterly earnings results on Thursday. The real estate investment trust reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.03, Zacks reports. Geo Group had a net margin of 3.69% and a return on equity of 7.26%. The business had revenue of $682.34 million for the quarter, compared to the consensus estimate of $665.81 million. During the same quarter in the prior year, the company earned $0.21 EPS. The firm’s quarterly revenue was up 13.1% on a year-over-year basis. Geo Group updated its FY 2025 guidance to 1.810-1.850 EPS and its Q4 2025 guidance to 0.230-0.270 EPS.

Geo Group Trading Down 1.8%

Shares of NYSE:GEO traded down $0.28 during midday trading on Friday, hitting $15.13. The company had a trading volume of 2,755,931 shares, compared to its average volume of 2,902,185. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.07. Geo Group has a 12 month low of $14.27 and a 12 month high of $36.46. The firm has a fifty day simple moving average of $19.22 and a 200 day simple moving average of $23.19. The stock has a market cap of $2.14 billion, a price-to-earnings ratio of 23.27, a PEG ratio of 1.87 and a beta of 0.67.

Hedge Funds Weigh In On Geo Group

Several institutional investors have recently modified their holdings of the stock. Geneos Wealth Management Inc. raised its position in shares of Geo Group by 245.1% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,101 shares of the real estate investment trust’s stock valued at $26,000 after acquiring an additional 782 shares during the period. NewEdge Advisors LLC raised its holdings in Geo Group by 81.9% in the first quarter. NewEdge Advisors LLC now owns 1,864 shares of the real estate investment trust’s stock worth $54,000 after purchasing an additional 839 shares during the period. Militia Capital Partners LP boosted its position in shares of Geo Group by 122.6% during the second quarter. Militia Capital Partners LP now owns 6,900 shares of the real estate investment trust’s stock worth $165,000 after purchasing an additional 3,800 shares in the last quarter. United Services Automobile Association acquired a new position in shares of Geo Group in the 1st quarter valued at $260,000. Finally, Alamea Verwaltungs GmbH increased its position in shares of Geo Group by 107.4% in the 2nd quarter. Alamea Verwaltungs GmbH now owns 14,421 shares of the real estate investment trust’s stock valued at $345,000 after buying an additional 7,468 shares in the last quarter. 76.10% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. Jones Trading reduced their target price on shares of Geo Group from $50.00 to $37.00 and set a “buy” rating on the stock in a research report on Friday. Weiss Ratings restated a “hold (c-)” rating on shares of Geo Group in a research report on Friday, October 31st. Finally, Wall Street Zen downgraded Geo Group from a “buy” rating to a “hold” rating in a report on Saturday. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $35.00.

Geo Group declared that its board has authorized a share buyback plan on Wednesday, August 6th that authorizes the company to repurchase $300.00 million in outstanding shares. This repurchase authorization authorizes the real estate investment trust to reacquire up to 8.2% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

About Geo Group

The GEO Group, Inc (NYSE: GEO) engages in ownership, leasing, and management of secure facilities, processing centers, and community-based reentry facilities in the United States, Australia, the United Kingdom, and South Africa. The company also provides secure facility management services, including the provision of security, administrative, rehabilitation, education, and food services; reentry services, such as temporary housing, programming, employment assistance, and other services; electronic monitoring and supervision services; and transportation services; as well as designs, constructs, and finances new facilities through projects.