Corrections Corporation of America Beats Analyst Estimates on EPS
Corrections Corporation of America (NYS: CXW) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Corrections Corporation of America met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share improved.
Margins contracted across the board.
Corrections Corporation of America reported revenue of $439.7 million. The six analysts polled by S&P Capital IQ looked for revenue of $436.1 million on the same basis. GAAP reported sales were 1.7% higher than the prior-year quarter's $432.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.41. The one earnings estimate compiled by S&P Capital IQ predicted $0.37 per share. GAAP EPS of $0.41 for Q4 were 5.1% higher than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.5%, 110 basis points worse than the prior-year quarter. Operating margin was 18.4%, 180 basis points worse than the prior-year quarter. Net margin was 9.2%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $431.7 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.78 billion. The average EPS estimate is $1.62.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 341 members out of 361 rating the stock outperform, and 20 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Corrections Corporation of America a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Corrections Corporation of America is outperform, with an average price target of $28.75.
Over the decades, small-cap stocks like Corrections Corporation of America have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Corrections Corporation of America to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Corrections Corporation of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.