GEO Stock: Q4 Earnings Miss Sparks Sharp Decline

The GEO Group, a leading provider of security and reintegration center services, reported disappointing financial results for the fourth quarter and full-year 2024, falling significantly below analyst expectations. The company's total revenue reached $607.7 million, representing a slight decrease of 0.1 percent compared to the same period last year. Net profit dropped substantially to $15.5 million or $0.11 per diluted share, down from $25.23 million or $0.17 per share in the previous year. Adjusted net income of $18.15 million or $0.13 per share also missed analyst forecasts, which had anticipated $0.23 per share. These underwhelming results triggered a notable market reaction, with GEO shares falling approximately 8 percent in trading, delivering a significant setback to investors who had previously shown interest in the company.

2025 Outlook Intensifies Investor Concerns

Further compounding market disappointment, GEO's guidance for the 2025 fiscal year projects adjusted earnings between $0.74 and $0.88 per share with expected revenue of approximately $2.5 billion. This forecast falls considerably below analyst expectations of $1.68 earnings per share and 4.25 percent revenue growth to $2.76 billion. The company also plans capital expenditures between $125 and $145 million for the current fiscal year. The substantial gap between company projections and market forecasts has heightened investor concerns about GEO Group's medium-term growth prospects, placing additional pressure on the stock price.

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Source StockWorld