GEO Group Shares Face Critical Legal and Financial Challenges

The equity of American prison operator GEO Group is confronting severe headwinds, with a pivotal Supreme Court case, disappointing forward guidance, and substantial analyst downgrades driving the stock toward unprecedented lows.

On November 6, GEO Group released quarterly results that initially appeared robust:
* Earnings per share reached $1.24, significantly higher than the $0.19 reported in the previous year
* Revenue climbed to $682 million from $603 million year-over-year
* Adjusted earnings came in at $0.25 per share

However, these figures masked underlying operational challenges. A substantial $232 million of the profit originated from the divestiture of correctional facilities in Oklahoma and Texas, rather than reflecting strong ongoing business performance. The company’s core operations failed Read more...