GEO Group Meets on Revenues, Misses on EPS
GEO Group (NYS: GEO) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 1 (Q4), GEO Group met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Gross margins dropped, operating margins expanded, net margins contracted.
GEO Group logged revenue of $406.5 million. The seven analysts polled by S&P Capital IQ expected a top line of $407.1 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $374.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.39. The seven earnings estimates compiled by S&P Capital IQ averaged $0.40 per share on the same basis. GAAP EPS of $0.30 for Q4 were 19% lower than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.7%, 30 basis points worse than the prior-year quarter. Operating margin was 12.2%, 480 basis points better than the prior-year quarter. Net margin was 4.6%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $413.9 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.69 billion. The average EPS estimate is $1.66.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GEO Group is buy, with an average price target of $27.08.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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