Thursday, August 05, 2021
The GEO Group, Inc. (GEO)
A Second Quarter Beat
With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
2Q21 Results. The GEO Group reported better-than-expected second quarter 2021 results. Total revenue for the quarter was $565.4 million compared to guidance of $558-$563 million and consensus of $561 million. We were at $563 million. GEO reported net income of $42 million, or $0.29 per diluted share, compared to guidance of $35-$38 million. Consensus was $0.28 and we were at $0.30. Adjusted earnings was $50.8 million or $0.42 per share.
Favorable Cost Trends. As with the first quarter, the earnings beat was driven by favorable cost trends, especially in the Secure Services business. Operating expenses as a percentage of revenue dropped to 71.6% from 74.3% in the first quarter. G&A as a percent of revenue rose to 9.7% sequentially from 8.41% due to $7.5 million of one-time restructuring charges. AFFO in the second quarter was $0.70 …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
