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GEO Group (NYSE:GEO) +6.3% pre-market Friday, following a 1.9% rise in the previous session, after the company reached an agreement with the Oklahoma Department of Corrections on a one-year contract to continue operating the Lawton Correctional and Rehabilitation Facility.
The Department of Corrections said it agreed to reduce the number of inmates housed in the facility to 2,388 from 2,616 as part of the new agreement, which GEO (GEO) said will significantly enhance its ability to address and manage inmate incidents.
The new contract comes a week after the company discontinued its contract for the Lawton facility.
Noble Capital analyst Joe Gomes, who rates GEO (GEO) at Outperform, says it is not clear whether the new contract will bring any material change in revenue, according to Bloomberg.