Research corecivic cxw withdraws guidance- how safe is the dividend

Tuesday, April 7, 2020

CoreCivic (CXW)

Withdraws Guidance. How Safe is the Dividend?

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.

Withdraws Guidance. Last week, CoreCivic withdrew its 2020 guidance due to the coronavirus impact, although the Company confirmed its 1Q20 guidance. We believe the most significant impact has been on ICE detainees and questions revolving around when or if the normal seasonal spike in detainees occurs this year. ICE accounted for 29% of revenue in 2019.


What If Matrix. Given all the uncertainty due to the virus, we performed a “What If” scenario for 2020. With 1Q20 confirmed, we basically are looking at the last 3 quarters. We assumed scenarios where revenue declined by $90 million, and operating and…

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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).

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