On Wednesday, The GEO Group, Inc. (NYSE:GEO) reported second-quarter results that surpassed analyst expectations, boosted by stronger revenue and the announcement of a $300 million share buyback program. Shares jumped 4.49% in pre-market trading after the report.
The private prison operator posted adjusted earnings of $0.22 per share, beating the consensus estimate of $0.17. Revenue reached $636.2 million, exceeding forecasts of $622 million and marking a 4.8% increase from $607.2 million in the same quarter last year.
“We are very pleased with our strong second quarter results, and the significant progress we have made towards meeting our growth and strategic objectives,” stated George C. Zoley, Executive Chairman of GEO. “All our efforts are aimed at placing GEO in the best competitive position possible to pursue what we believe to be unprecedented growth opportunities.”
The company’s board approved a $300 million share repurchase plan, valid until June 30, 2028, allowing stock buybacks through various means, reflecting confidence in GEO’s financial health.
Adjusted EBITDA for Q2 came in at $118.6 million, slightly lower than $119.3 million recorded in the same quarter of 2024.
Looking ahead, GEO expects third-quarter adjusted earnings between $0.20 and $0.23 per share on revenue of $650 million to $660 million, falling short of the analyst consensus of $0.26. For Q4, the company projects adjusted earnings between $0.28 and $0.35 per share with revenue of $658 million to $673 million.
Recently, GEO completed the sale of its Lawton, Oklahoma facility for $312 million, using part of the proceeds to acquire the 770-bed Western Region Detention Facility in San Diego for about $60 million, a property it had previously leased.
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