Thursday, November 03, 2022
CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3Q22 Operating Results. CoreCivic reported revenue of $464.2 million, compared to $471.2 million in the year ago period and our estimate of $456 million. Higher expenses, related to labor costs, including hiring additional staff ahead of expected population increases, caused net income to be below our forecast. Driven by the gain on the McRae sale, reported net income was $68.3 million, or $0.58 per diluted share, versus our estimate of $72.5 million, or $0.61 per share.
La Palma Update. Ongoing expenses with the La Palma transition impacted 3Q22 but the good news is the transition should now be complete by yearend as opposed to 1Q23. With the ICE contract at La Palma expired, management believes the Company is well positioned to add additional ICE populations at its other Arizona facilities. Overall, CoreCivic is well positioned to accept additional populations, from the Federal government or state governments.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
