By Dean Seal
GEO Group provided revenue and earnings guidance for 2025 that fell short of analyst expectations and said high overheads ate into its fourth-quarter profit.
The private prison operator said it expects $2.5 billion in revenue this year, well below the $2.76 billion target of analysts polled by FactSet.
Earnings are expected to be 74 cents to 88 cents a share, missing analyst forecasts for $1.58 a share.
In the fourth quarter, the Boca Raton, Fla., company posted a profit of $15.5 million, or 11 cents a share, compared with $25.2 million, or 17 cents a share, in the same period a year earlier.
Stripping out one-time items, adjusted earnings were 13 cents a share. Analysts surveyed by FactSet had been expecting 22 cents a share.
Revenue edged slightly lower year-on-year to $607.7 million, in line with analyst estimates, according to FactSet.
GEO Group's quarterly profit was dented by higher general and administrative costs, due in part to a reorganization of its management team and additional professional fees the company incurred in anticipation of future projects and activity this year.
Shares fell 8.5% to $23.60 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 27, 2025 06:35 ET (11:35 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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