Private corrections company GEO Group (NYSE: GEO) will be reporting results this Wednesday before market hours. Here’s what to expect.
GEO Group beat analysts’ revenue expectations last quarter, reporting revenues of $707.7 million, up 16.5% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ full-year EPS guidance estimates.
Is GEO Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting GEO Group’s revenue to grow 14.6% year on year, improving from its flat revenue in the same quarter last year.
The majority of analysts covering the company have 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 multiple times 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 10%, beating analysts’ expectations by 2.7%, and CECO Environmental reported revenues up 16.5%, topping estimates by 4.1%. CECO Environmental traded up 11.6% following the results.
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 8.7% on average over the last month. GEO Group is up 4.7% during the same time and is heading into earnings with an average analyst price target of $29.50 (compared to the current share price of $18.47).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
