GEO Group Shares Drop 12% Despite Upbeat Q4 Results

Shares of The GEO Group, Inc. (GEO), a diversified government service provider, are falling more than 12% Tuesday morning despite reporting better-than-expected fourth-quarter results.

The company reported a profit of $41.53 million, or $0.29 per share in the furth quarter compared with a loss of $49.8 million or $0.41 per share in the previous-year quarter.

Excluding one-time items, earnings were $42.1 million, or $0.34 per share, that beat the average estimate of analysts polled by Thomson-Reuters of $0.26 per share.

Adjusted Funds From Operations, however, declined to $71.86 million or $0.58 per share from $79.64 million or $0.66 per share last year.

Revenue for the quarter increased to $620.7 million from $557.5 million last year. The consensus estimate was for $604.4 million.

GEO, currently at $10.78, has traded in the range of $5.21-$12.44 in the last 1 year.

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