Private corrections company GEO Group (NYSE:GEO) will be announcing earnings results tomorrow before market open. Here’s what to expect.
GEO Group beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $607.7 million, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.
Is GEO Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting GEO Group’s revenue to grow 1.8% year on year to $616.8 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GEO Group has missed Wall Street’s revenue estimates twice over the last two years.
Looking at GEO Group’s peers in the business services & supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. MSA Safety delivered year-on-year revenue growth of 1.9%, beating analysts’ expectations by 5%, and CECO Environmental reported revenues up 39.9%, topping estimates by 17%. MSA Safety traded up 2.1% following the results while CECO Environmental was also up 23.9%.
Read our full analysis of MSA Safety’s results here and CECO Environmental’s results here.
There has been positive sentiment among investors in the business services & supplies segment, with share prices up 11.2% on average over the last month. GEO Group is up 14.3% during the same time and is heading into earnings with an average analyst price target of $44.80 (compared to the current share price of $31.34).
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