Why Geo Group Shares Are Dropping Today

Geo Group Inc GEO shares are trading lower after the company issued full-year 2023 EPS guidance below estimates.

What Happened: On Tuesday, Geo Group provided earnings guidance for 2023, missing estimates. The company said it expects an earnings figure in the range of $0.80 to $1.02 per share, which is below the consensus of $1.25 per share.

Geo Group noted that it has seen a decline in the number of participants under the U.S. Department of Homeland Securities' “ISAP program” since the start of 2023 due to immigration policy changes and budgetary pressures. The company said the decline is the primary driver of its weak EPS outlook. Additionally, Geo Group's guidance includes assumptions for higher labor, medical and food expenses due to rising inflationary pressures.

George C. Zoley, Executive Chairman of Geo, stated, "We remain optimistic that the successful execution of our strategy can continue to unlock equity value for our shareholders.”

Geo Group specializes in detention facilities and community-reentry centers. It operates in four segments: U.S. Secure Services, Electronic Monitoring and Supervision, Reentry Services, and International Services.

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GEO Price Action: According to data from Benzinga Pro, Geo Group was down 19.6%, trading at $9.61 at the time of publication. It has a 52-week high of $12.44 and a 52-week low of $5.20.