UPDATE 2-GEO Group Q1 profit meets market view; shares rise

(Recasts; adds details, analysts' comments, share movement)

By Swagata Gupta

BANGALORE, May 1 (Reuters) - Prison operator GEO Group Inc (GEO.N: Quote, Profile, Research) reported first-quarter earnings in line with market expectations and forecast a strong project pipeline for 2008 and 2009.

"With the recent pressure on the stock, we believe the in-line results and reiteration of annual guidance, coupled with the announcement that it will re-open its Michigan facility, will be enough to push the stock up today," Banc of America Securities analyst Thomas Robillard said in a note.

GEO shares, which had lost about 5 percent so far this year, rose about 6 percent in intra-day trading on the New York Stock Exchange Thursday.

The Boca Raton, Florida-based company, said it had several projects scheduled to open in 2008 and 2009 totaling about 9,100 beds under development.

GEO, the second largest provider of correctional services to the U.S. government, currently has operations in 18 states, with about 60,000 beds worldwide.

"GEO is getting some new contracts from South Africa and the UK, which are giving the company some great international exposure," Jesup & Lamont Securities analyst Robert Wasserman said by phone.

The weak dollar was also helping the company's operations in these countries and in Australia, Wasserman added.