Solid First Quarter. What’s Next?

Thursday, May 7, 2020

CoreCivic (CXW)

Solid First Quarter. What’s Next?

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 corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 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.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

1Q20 Results. Revenue came in at $491.1 million up 1.5% over the first quarter of 2019, and adjusted EPS was $0.30 versus $0.42 last year. We had forecast $476 million and $0.26, respectively. Normalized FFO was $0.54 per share and AFFO came in at $0.58 per share compared to $0.64 and $0.63, respectively, last year. We were at $0.52 and $0.53. Recall, EPS was expected to decline as populations, particularly for ICE, were expected to decline even before the COVID crisis.


COVID Response. Operationally, in response to the crisis, CoreCivic has taken a number of measures to conform with guidance from its government partners and public health officials for prevention and addressing positive COVID cases. The Company also announced in April bonuses for every frontline employee as well as an updated leave policy. The Company also offered idle bed capacity at no cost to communities. While these measures will impact operating costs in the short-term, the measures should help the Company exit the…

Click to get the full report.

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.