Shares of GEO Group Inc (GEO) plummeted 5.59% in Thursday's trading session, despite the company reporting better-than-expected third-quarter results. The stark reversal came after an initial 3.4% pre-market gain, as investors digested the company's mixed guidance and financial outlook.

GEO Group reported Q3 adjusted earnings per share of $0.25, surpassing the analyst estimate of $0.24. Revenue for the quarter came in at $682.3 million, also beating the expected $664.4 million. The company's net income stood at $173.9 million, or $1.24 per diluted share, a significant increase from $26.3 million, or $0.19 per diluted share, in the same quarter last year.

However, the positive earnings report was overshadowed by the company's updated guidance. GEO narrowed its full-year adjusted net income outlook to $0.84 to $0.87 per diluted share, down from the previous range of $0.84 to $0.94. The company also raised its full-year revenue guidance to approximately $2.6 billion. For the fourth quarter, GEO expects revenue between $651 million and $676 million, which falls short of analyst expectations of $690.3 million. The mixed outlook, combined with the announcement of an increased share repurchase authorization to $500 million, appears to have left investors uncertain about the company's near-term prospects, leading to the sharp sell-off during regular trading hours.