Private prison operator CoreCivic (NYSE:CXW) will be announcing earnings results tomorrow after market hours. Here’s what to look for.
CoreCivic beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $479.3 million, down 2.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates. It reported 68,200 average available beds , down 3.5% year on year.
Is CoreCivic a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting CoreCivic’s revenue to decline 4.8% year on year to $476.5 million, a reversal from the 9.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CoreCivic has missed Wall Street’s revenue estimates twice over the last two years.
Looking at CoreCivic’s peers in the business services & supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. MSA Safety delivered year-on-year revenue growth of 1.9%, beating analysts’ expectations by 5%, and CECO Environmental reported revenues up 39.9%, topping estimates by 17%. MSA Safety traded up 2.1% following the results while CECO Environmental was also up 23.9%.
Read our full analysis of MSA Safety’s results here and CECO Environmental’s results here.
There has been positive sentiment among investors in the business services & supplies segment, with share prices up 11.2% on average over the last month. CoreCivic is up 17.3% during the same time and is heading into earnings with an average analyst price target of $30.50 (compared to the current share price of $22.88).
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