Corrections of America Earnings: Here’s Why Investors are Not Happy Now

Corrections Corporation of America (NYSE:CXW) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.31%.

Corrections Corporation of America Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 36.84% to $0.52 in the quarter versus EPS of $0.38 in the year-earlier quarter.

Revenue: Decreased 2.01% to $433.98 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Corrections Corporation of America reported adjusted EPS income of $0.52 per share. By that measure, the company beat the mean analyst estimate of $0.50. It beat the average revenue estimate of $431.55 million.

Quoting Management: CCA President and Chief Executive Officer, Damon Hininger, stated, “We are pleased with our second quarter financial results, our new three-year contract with the California Department of Corrections and Rehabilitation, and the increase in beds utilized by Oklahoma under our existing contract.”

Key Stats (on next page)…

Revenue increased 1.94% from $425.72 million in the previous quarter. EPS increased 4% from $0.50 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.51 to a profit $0.50. For the current year, the average estimate is a profit of $2.02, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)