UPDATE 1-Geo Group Q1 beats Street, raises FY profit view

Wed May 5, 2010 9:25am EDT

* Q1 EPS $0.34 vs est $0.33

* Revenue rise 11 pct, edges past est

* Sees 2010 pro forma EPS $1.40-$1.48

* Cuts upper end of 2010 revenue view

May 5 (Reuters) - Geo Group Inc (GEO.N) posted better-than-expected quarterly results, helped by a strong performance at its international services business, prompting the prison operator to raise its 2010 earnings outlook.

For 2010, the company now sees adjusted earnings of $1.40 to $1.48 a share, up from its prior view of $1.36 to $1.46 a share.

It, however, cut the upper end of its full-year revenue outlook range to $1.12 billion from $1.13 billion. It sees revenue of at least $1.10 billion.

Analysts on average were expecting 2010 earnings of $1.42 a share, before items, on revenue of $1.13 billion, according to Thomson Reuters I/B/E/S.

For the first quarter, Geo Group, which agreed to buy rival Cornell Cos CRN.N for about $374 million in cash and stock in April, earned $17.7 million, or 34 cents a share, compared with $14.7 million, or 28 cents a share, a year ago.

Revenue at the company, which also has operations in the UK and Australia, rose 11 percent to $287.5 million, helped by a 79 percent surge in international services revenue.

Analysts expected the company, which competes with larger rival Corrections Corp of America (CXW.N), to earn 33 cents a share, on revenue of $287.1 million.

Shares of Boca Raton, Florida-based Geo Group closed at $21.25 Tuesday on the New York Stock Exchange. (Reporting by Renju Jose in Bangalore; Editing by Anne Pallivathuckal)


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