Geo Group Plunges Following Mixed Outlook

Shivani Kumaresan
2 min read
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In this article:

  • Geo Group Inc (NYSE: GEO) reported fourth-quarter FY22 sales growth of 11.3% year-on-year to $620.68 million, beating the consensus of $604.40 million.

  • Operating income increased by 42.6% Y/Y to $108.4 million, and the margin expanded by 390 bps to 17.5%.

  • Adjusted EPS reduced to $0.34 from $0.38 a year ago. AFFO per share was $0.58 compared to $0.66 a year ago.

  • Adjusted EBITDA increased by 17.2% Y/Y to $145.5 million, and margin expanded by 120 bps to 23.4%.

  • GEO had $95.1 million in cash and cash equivalents as of December 31, 2022.

  • George C. Zoley, Executive Chairman of GEO, commented, "Our strong results also positioned us to reduce our net debt to approximately $1.975 billion and our net leverage to approximately 3.7 times Adjusted EBITDA by year-end 2022, marking substantial progress towards our goal of reducing our net leverage to below 3.5 times Adjusted EBITDA by the end of 2023 and to below 3 times Adjusted EBITDA by the end of 2024."

  • Outlook: Geo sees FY23 revenues of $2.37 billion - $2.47 billion versus the consensus of $2.47 billion.

  • The company expects FY23 adjusted EBITDA of $500 million - $540 million.

  • For Q1 FY23, it sees revenue of $605 million - $610 million versus the Street view of $591.92 million. It sees Q1 adjusted EBITDA of $127 million - $132 million.

  • Price Action: GEO shares are trading lower by 12.38% at $10.47 on the last check Tuesday.

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This article Geo Group Plunges Following Mixed Outlook originally appeared on Benzinga.com

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