Private prison operator CoreCivic (NYSE:CXW) will be reporting earnings this Wednesday after market close. Here’s what to expect.
CoreCivic beat analysts’ revenue expectations last quarter, reporting revenues of $604 million, up 26% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is CoreCivic a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting CoreCivic’s revenue to grow 23.5% year on year, a reversal from the 2.4% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CoreCivic has a history of exceeding Wall Street’s expectations.
Looking at CoreCivic’s peers in the business services & supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. MSA Safety delivered year-on-year revenue growth of 10%, beating analysts’ expectations by 2.7%, and CECO Environmental reported revenues up 16.5%, topping estimates by 4.1%. CECO Environmental traded up 11.6% following the results.
Read our full analysis of MSA Safety’s results here and CECO Environmental’s results here.
There has been positive sentiment among investors in the business services & supplies segment, with share prices up 8.7% on average over the last month. CoreCivic’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $29.80 (compared to the current share price of $20.15).
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