CoreCivic 2Q Revenue Rises as ICE Contracts Surge

Dow Jones08-06 05:52
 

CoreCivic's revenue grew in the latest quarter as the prison operator housed more detainees from U.S. Immigration and Customs Enforcement.

The Brentwood, Tenn., company posted a second-quarter profit of $37.1 million, or 37 cents a share, compared with $38.5 million, or 35 cents a share, a year earlier.

Adjusted earnings per share were 38 cents, topping FactSet analyst estimates of 34 cents.

Revenue climbed 27% to $684.9 million, above analyst estimates of $618.6 million.

The company said revenue from its federal customers-which primarily include ICE and the U.S Marshals Service-rose 27% year over year, and made up more than half of its overall topline in the quarter.

The growth in federal revenue was primarily due to increased occupancy at certain facilities, particularly those where CoreCivic has contracts with ICE, and per diem increases, the company said.

For the full year, the company now expects earnings per share of $15 to $15.20, up from $1.51 to $1.61 previously. The updated outlook reflects the gain on sales of four facilities the company sold, which will be reported in the third quarter, and by the repayment of $608.5 million of debt.

CoreCivic now forecasts full-year adjusted earnings per share of $1.62 to $1.70, up from its prior guidance of $1.53 to $1.63.

The new guidance factors in modestly higher residential populations compared with the previous forecast based on recent trends, as well as an increase in general and administrative expenses, the company said.

 
 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment