The GEO Group Inc (NYSE:GEO) shares are trading higher after it reported fourth-quarter FY23 revenue of $608.3 million, beating the consensus of $597.5 million.
Adjusted EBITDA fell to $129.0 million from $145.5 million a year ago. Adjusted EPS of $0.29 surpassed the consensus of $0.18.
The company reduced total net debt by $197.0 million, ending the year with approximately $1.78 billion in total net debt.
As of December 31, 2023, cash and cash equivalents stood at $93.97 million.
Guidance: GEO expects first-quarter revenue of $600 million to $610 million (vs. $605.35 million consensus), net income of $22 million to $24 million, and adjusted EBITDA of $117 million to $122 million.
For FY24, the company anticipates net income of $110 million to $125 million, revenues of around $2.4 billion (vs. $2.48 billion estimate) and adjusted EBITDA of $485 million and $515 million.
George C. Zoley, Executive Chairman of GEO, said, “Our company delivered strong operational and financial performance in 2023, resulting in the second-best year in our company’s 40-year history. We believe that the unparalleled scope of our diversified services platform, which allows us to offer a full spectrum of innovative solutions to our government agency partners, gives GEO a unique competitive advantage to capture future quality growth opportunities.”
Price Action: GEO shares are up 6.59% at $11.84 on the last check Thursday.
