Private prison operator CoreCivic's Q3 revenue beats; additional $500 mln buyback announced

Overview

• US private prison operator's Q3 revenue rose 28% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 more than doubled but missed analyst expectations

• Company executed $500 mln share buyback and expanded authorization by another $500 mln

Outlook

• Company now sees 2026 net income of $1.461 bln to $1.467 bln, down from prior view

• Company raises 2026 adjusted net income forecast to $165 mln-$171 mln from $157 mln-$165 mln

• Company says 2026 guidance does not include impact of potential additional facility sales

Result Drivers

• OCCUPANCY GAINS - Co said increased demand from ICE and higher utilization of recently activated facilities drove results

• ASSET SALES - Co said sale of four detention facilities to the federal government generated significant gains

• DEBT REPAYMENT & BUYBACK - Lower interest expense from debt repayment and reduced share count from buybacks boosted per-share earnings

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for CoreCivic, Inc. is $42.00, about 35.6% above its November 3 closing price of $30.97

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 16 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)