2023-05-04 10:09:56 ET
Corecivic ( NYSE: CXW ) stock fell 7.2% on Thursday after the private prison operator narrowed its 2023 normalized FFO guidance to reflect the non-renewal of its lease at the North Fork prison, which expires June 30, in its Q1 earnings report .
The company now expects 2023 normalized FFO per share of $1.31-$1.42 vs. prior outlook of $1.35-$1.50. Consensus estimate is $1.43.
The outlook also reflects the potential transition of inmates out of the Davis Correctional Facility during Q2 and idle operations during H2 of 2023. This is because Oklahoma is yet to renew its contract, which expires June 30, as the parties have not been able to reach acceptable terms. Negotiations are ongoing. The facility operated at a loss during 2022 and Q1 2023.
Corecivic ( CXW ) reported Q1 FFO per share of $0.34, flat from Q1 2022, hurt by the transition of inmates at its La Palma prison and the expiration of its federal contract at the McRae facility in November 2022.
Revenue rose 1.1% Y/Y to $458M. Safety revenue increased 0.8% to $417.7M and Community revenue grew 9.5% to $26.4M, but Properties revenue fell 5.2% to $13.8M.
While staffing levels improved in Q1 from the year-ago quarter, Corecivic ( CXW ) incurred higher wage rates due to efforts to attract and retain facility staff.
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Corecivic stock drops 7% after FY normalized FFO guidance narrowed