CXW Earnings Prediction
The chart below shows how CXW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CXW sees a +3.54% change in stock price 10 days leading up to the earnings, and a +1.19% change 10 days following the report. On the earnings day itself, the stock moves by +0.54%. This data can give you a slight idea of what to expect for the next quarter's release.
CXW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
491.56M
1.62%
0.30%
Gross Margin
18.00%
17.88%
7.27%
Operating Margin
9.63%
16.73%
-2.33%
Net Margin
4.29%
49.48%
10.85%
EPS
0.19
58.33%
11.76%
No Data Available
CXW Earnings Analysis
CoreCivic, Inc. Corporation (CXW.N) Earnings Conference Call
Positive
CoreCivic Revenue Increase: 1. Revenue Growth: CoreCivic generated revenue of $491.6 million in Q3 2024, a 2% increase compared to the prior year, with underlying revenue growth exceeding 5% when excluding the closed South Texas family residential center.
Funds from Operations Increase: 2. Increased Funds from Operations: Normalized funds from operations (FFO) rose to $47.6 million, or $0.43 per share, representing a 23% increase per share compared to $40.5 million, or $0.35 per share, in Q3 2023.
Operating Margin Improvement: 3. Improved Operating Margin: The operating margin for Safety and Community segments improved to 24.9% in Q3 2024, up from 21.3% in the prior year, driven by increased occupancy from 72% to 75.2% and a 4% rise in average per diem rates.
Cash and Liquidity Strength: 4. Strong Cash Position: CoreCivic ended the quarter with $108 million in cash and an additional $257 million in borrowing capacity, providing total liquidity of $365 million to support future growth and operational needs.
Share Repurchase Activity: 5. Share Repurchase Program: The company repurchased 4 million shares of common stock at a total cost of $59.5 million during 2024, with a remaining authorization of $177.9 million under its share repurchase program.
Negative
Federal Revenue Decline: 1. Decreased Federal Revenue: Federal revenue in the Safety and Community segments decreased by $1.5 million year-over-year, primarily due to a $16.5 million reduction in management revenue at the South Texas facility, which was terminated in August 2024.
Property Segment Revenue Drop: 2. Lease Revenue Decline: Revenue in the Property segment declined by $6.4 million, largely attributed to the expiration of a lease at the California City facility, resulting in an $8 million revenue reduction compared to the prior year.
Rising Operating Expenses: 3. Increased Operating Expenses: Operating expenses increased significantly, driven by a $2.9 million legal settlement in the Community segment, contributing to a decline in net operating income.
Asset Impairment Impact: 4. Impairment Charges: The company recorded $3.1 million in asset impairments during the quarter, reflecting the financial impact of facility closures and operational adjustments.
2024 Financial Guidance Update: 5. Guidance Implications: The updated financial guidance for 2024 includes the impact of the South Texas Family Residential Center's termination, which is expected to reduce normalized earnings per share by $0.11.
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CXW Earning Call Sentiment
CoreCivic, Inc. (CXW) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CXW.N
-2.75%Positive
The earnings call reflects strong financial performance with revenue and margin growth, supported by increased occupancy and new contracts. Despite the termination of the South Texas contract, the company maintains a positive outlook with increased shareholder returns and reduced debt. The Q&A session highlighted potential growth from increased occupancy and flexibility in contracting, though some uncertainties remain. The market cap suggests moderate sensitivity, leading to a positive stock price prediction, especially with the strong financial metrics and strategic initiatives in place.
