GEO Group 2Q income up 4 percent

BOCA RATON, Fla. (AP) -- Private prison operator GEO Group Inc. said Tuesday its net income grew 4 percent in the second quarter as it opened a new detention facility for U.S. Immigrations and Customs Enforcement.

Revenue from its detention and corrections unit grew 7 percent while other businesses were essentially unchanged from a year ago. The company also narrowed its annual income guidance and lowered its revenue forecast.

Net income rose to $22.5 million, or 37 cents per share, from $21.6 million, or 33 cents per share, a year ago. Excluding special items the company earned 41 cents per share from continuing operations. Revenue rose 4 percent, to $412.3 million.

Analysts forecast net income of 41 cents per share and $413.8 million in revenue, according to FactSet.

Along with the new immigration and customs enforcement processing facility in California, GEO opened facilities in Georgia and Texas and expanded a one in Indiana. It closed four other facilities over the last year.

GEO Group said it now expects adjusted income of $1.56 to $1.58 per share, compared to a previous estimate of $1.54 to $1.60 per share. It expects revenue of $1.64 billion to $1.65 billion, down from $1.65 billion to $1.66 billion. Analysts estimate annual earnings of $1.55 per share on revenue of $1.66 billion.

The company also will pay a quarterly dividend of 20 cents per share on Sept. 7 to shareholders of record as of Aug. 21.

Shares of Geo Group rose 38 cents to close at $23.99.