What's Going On With Security Company GEO Group Stock Today?

The GEO Group, Inc. GEO shares are trading higher after the company reported second-quarter FY24 revenue of $607.2 million, missing the consensus of $608.08 million.

Adjusted EBITDA declined to $119.3 million from $129.0 million a year ago quarter. Adjusted EPS of $0.23 exceeded the consensus of $0.17.

George C. Zoley, Executive Chairman of GEO, said, “Our diversified business units have continued to deliver steady financial and operational performance. We are pleased to have completed the comprehensive refinancing of our debt, including the exchange and retirement of substantially all of our convertible notes, during the second quarter of 2024.”

In the second quarter of 2024, U.S. Immigration and Customs Enforcement (ICE) issued a task order for the GEO-owned 1,940-bed Adelanto ICE Processing Center in California.

Also, on June 20, the company announced its intent to terminate its management contract for the 2,388-bed Lawton Correctional and Rehabilitation Facility, which was scheduled to end on June 30.

After accounting for cash-on-hand of $46.3 million, the company’s total net debt was approximately $1.754 billion at the end of the second quarter of 2024.

Outlook: GEO Group projects third-quarter 2024 EPS of $0.21 to $0.25 vs. an estimate of $0.27 and revenues of $606 million-$616 million vs. an estimate of $613.3 million.

GEO Group anticipates fourth-quarter EPS of $0.22 – $0.29 vs. $0.30 estimate and revenue of $611 million-$621 million vs. the $618.8 million estimate.

The company revised outlook for FY24 revenues from $2.40 billion to $2.44 billion against the consensus of $2.446 billion. The company reduced its adjusted EPS outlook from $0.87 – $1.02 to $0.82 – $0.93 vs. street view of $0.92 and adjusted EBITDA to $485 million – $505 million from the prior view of $485 million – $515 million.

Price Action: GEO shares are up 2.57% at $13.16 premarket at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.