Geo Group (GEO) Falls 11.46% on Lower Earnings Outlook

We recently published 10 Stocks Taking the Worst Hit. The GEO Group Inc. (NYSE:GEO) is one of the worst-performing stocks on Wednesday.

The GEO Group slashed its share prices by 11.46 percent on Wednesday to close at $22.88 apiece as investors soured on the lower-than-expected earnings outlook for full-year 2025, shunning its impressive income performance in the second quarter of the year.

In an updated report, The GEO Group Inc. (NYSE:GEO) raised its 2025 revenue target to $2.56 billion, up from the $2.53 billion guidance previously. However, analysts had expected $2.58 billion.

Additionally, The GEO Group Inc. (NYSE:GEO) expects attributable net income to be in a range of $1.99 to $2.09 per diluted share, including a $228 million gain on the sale of its Lawton Facility. Adjusted EBITDA was pegged at $465 million to $490 million.

In the second quarter of the year, The GEO Group Inc. (NYSE:GEO) swung to an attributable net income of $29 million from a $32.5 million net loss in the same period last year. Revenues grew by 4.8 percent to $636 million from $608 million year-on-year.

Photo by Anthony Tran on Unsplash

In the first half, attributable net income ended at $48.7 million, reversing a net loss of $9.8 million in the same comparable period. Revenues inched up by 2.5 percent to $1.24 billion from $1.21 billion year-on-year.