GEO Group affirms 2008 earnings and revenue guidance

BOCA RATON, Fla.—GEO Group Inc., which operates correctional and mental health facilities, maintained its 2008 guidance on Thursday, after reporting that first-quarter earnings more than doubled.

GEO continues to expect 2008 earnings between $1.27 and $1.35 per share, excluding 15 cents per share in one-time expenses. The company also still expects full-year revenue in the range of $1.01 billion to $1.03 billion, without passthrough construction revenue.

Analysts surveyed by Thomson Financial, who generally exclude one-time items, forecast 2008 earnings of $1.29 on revenue of $1.08 billion.

For the second quarter, GEO expects earnings of 30 to 32 cents per share, excluding one-time expenses. The company predicts quarterly revenue will range from $245 million to $250 million, excluding passthrough construction revenue.

Analysts forecast second-quarter earnings of 31 cents per share on revenue of $266.8 million.

"Our organic growth pipeline remains strong with projects scheduled to open in 2008 and 2009 totaling approximately 9,100 beds under development," said Chairman and Chief Executive George C. Zoley.

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