The GEO Group, Inc. (NYSE:GEO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
The GEO Group, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 77.42% to $0.55 in the quarter versus EPS of $0.31 in the year-earlier quarter.
Revenue: Decreased 8.57% to $377 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: The GEO Group, Inc. reported adjusted EPS income of $0.55 per share. By that measure, the company beat the mean analyst estimate of $0.38. It missed the average revenue estimate of $378.5 million.
Quoting Management: George C. Zoley, Chairman and Chief Executive Officer of GEO, said: “We are pleased with our first quarter results and confirmed outlook for 2013, which continue to reflect strong operational and financial performance from our diversified business units. During the first quarter, we achieved several important milestones with the issuance of senior notes at a historically low interest rate and the amendment of our senior credit facility. These important steps will give us additional flexibility as we continue our efforts to maximize value for our shareholders.”
Key Stats (on next page)…
Revenue increased 48.47% from $253.93 million in the previous quarter. EPS increased 25% from $0.44 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.42 and has not changed. For the current year, the average estimate has moved up from a profit of $1.65 to a profit of $1.71 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)