Corrections Corp. of America 3Q profit jumps
NASHVILLE, Tenn. (AP) - Prison operator Corrections Corp. of
America said its third-quarter profit jumped 19 percent as more
prisoners were locked up in its California and Arizona facilities.
The company said it earned $45.3 million in the quarter that
ended Sept. 30, or 39 cents per share. That was up from $37.9
million, or 30 cents per share, during the same period last year.
Not counting an unusual tax benefit, the company would have
earned 33 cents per share - above the 31 cents per share average
expected by analysts surveyed by Thomson Reuters.
NYSE:CXW Updated: 16:00 ET 25.18 +0.44 |
Revenue rose about 6 percent to $426 million from $403.8 million
a year earlier, also topping analysts' $422.8 million forecast. The
revenue increase was driven by a 4.5 percent rise in its average
daily inmate population, plus a 1.3 percent increase in revenue for
each person locked up one day.
Management revenue from states rose nearly 7 percent to $224.9
million as the inmate population from California and Arizona rose,
partially offset by a drop in the number of prisoners in Minnesota
and Washington.
The company said it expects a fourth-quarter profit of 33 cents
to 35 cents per share, and a full-year profit of $1.24 to $1.26 per
share, not counting special items. Analysts are expecting a profit
of 34 cents per share for the fourth quarter and $1.25 per share
for the year, on average.
The company said the general economy remains uncertain, and
states - which pay the company to lock up their prisoners - are
facing budget revenue shortfalls. It said its prediction includes
the potential for additional pricing pressure, and the risk of
population declines from some customers.
Corrections Corp. shares rose 33 cents to close earlier at
$25.49, and slipped 68 cents, or 2.7 percent in late trading.
11/04/09 18:55
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