Prison operator CoreCivic Q2 revenue misses estimates; hikes forecast
Prison operator CoreCivic Q2 revenue misses estimates; hikes forecast
Overview
U.S. private prison operator's Q2 revenue rose 27% yr/yr but missed analyst expectations
Adjusted diluted EPS for Q2 rose 5.6% yr/yr, driven by facility activations and acquisitions
Company sold four detention facilities for $2.2 bln and expanded share repurchase authorization by $500 mln
Outlook
CoreCivic raises full-year 2026 net income guidance to $1.497 bln-$1.516 bln
Company expects full-year 2026 adjusted diluted EPS of $1.62-$1.70
CoreCivic anticipates immaterial earnings impact from Prairie Facility activation in 2026
Result Drivers
FACILITY ACTIVATIONS - Co said increases in adjusted diluted EPS were driven by activations of previously idle facilities and new contract awards
HIGHER FEDERAL POPULATIONS - Co said increased occupancy at facilities with ICE contracts and per diem increases drove federal revenue growth
ACQUISITIONS AND SHARE COUNT - Co said acquisition of Clinical Solutions Pharmacy and lower weighted average diluted shares outstanding supported EPS growth
Company press release: ID:nGNX8fx8sh
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $80.10 mln | $618.63 mln (5 Analysts) |
Q2 EPS |
| $0.37 |
|
Q2 Net Income |
| $37.10 mln |
|
Q2 Adjusted EBITDA |
| $109.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy"
Wall Street's median 12-month price target for CoreCivic, Inc. is $36.00, about 19.4% above its August 4 closing price of $30.15
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)