Government Service Provider GEO Group Posts Mixed Earnings, Lowers Debt, Revises Q4 & FY23 Outlook
Portfolio Pulse from Lekha Gupta
The GEO Group Inc reported Q3 FY23 revenue of $602.8 million, beating the consensus of $595.3 million. Adjusted EPS of $0.19 came in line with the consensus. The company reduced total net debt by $109 million, ending the quarter with approximately $1.8 billion in total net debt. GEO lowered its Q4 revenue outlook to $590 million-$600 million and revised its FY23 Adjusted EBITDA outlook to $495 million-$500 million. The company's shares are trading higher by 4.13% at $9.32.
November 07, 2023 | 6:08 pm
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GEO Group reported better than expected Q3 revenue and reduced its net debt, but lowered its Q4 revenue outlook. Its shares are trading higher.
The company's better than expected Q3 revenue and reduction in net debt are positive signs, which likely contributed to the increase in its share price. However, the lowered Q4 revenue outlook could potentially impact future earnings negatively.
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