Core Insights - GEO Group's shares fell 11.1% after reporting strong third-quarter results but providing a disappointing fourth-quarter forecast [1] - The fourth-quarter revenue guidance of $663.5 million is 4.7% below analysts' estimates, and the GAAP earnings per share forecast of $0.25 missed expectations by 17.4% [1] - The third-quarter revenue grew 13.1% year-on-year to $682.3 million, exceeding estimates, while GAAP earnings per share of $1.24 were 58.5% above consensus [1] Market Reaction - The stock market's reaction indicates significant volatility, with GEO Group experiencing 28 moves greater than 5% in the past year, suggesting a strong impact on market perception [3] - The recent price drop is seen as an overreaction, potentially presenting a buying opportunity for high-quality stocks [2] Historical Performance - GEO Group's stock is down 46% year-to-date, trading at $15.27, which is 56.8% below its 52-week high of $35.35 from January 2025 [5] - An investment of $1,000 in GEO Group shares five years ago would now be worth $1,807 [5]
Why GEO Group (GEO) Shares Are Getting Obliterated Today