Geo Group Inc (NYSE: GEO) shares plummeted 6.6% in pre-market trading on Tuesday, following the release of the company's fourth-quarter earnings results which missed analysts' expectations.
The private prison operator reported earnings per share of $0.22, falling significantly short of the consensus estimate of $0.34. While revenues came in line with forecasts at $2.4 billion, the disappointing bottom-line performance raised concerns among investors and analysts.
Reacting to the earnings miss, analysts cut their earnings forecasts for Geo Group, reflecting reduced optimism about the company's profitability outlook. The average price target, however, was increased to $41.20 from $37.22, suggesting analysts still see potential upside in the stock despite the near-term challenges.
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