CORECIVIC Reports 4th Quarter FY 2022 Earnings: Total Revenue Down 12.8%, Net Income Slight Decrease of 0.1% YOY.

Earnings report

On December 31, 2022, CORECIVIC ($NYSE:CXW) reported their earnings results for their fourth quarter of fiscal year 2022, ending February 9, 2023. CORECIVIC is a company that provides corrections and detention management services to government agencies. The earnings report for their fourth quarter was not as strong as in previous years. Total revenue was USD 24.4 million, a decrease of 12.8% compared to the same quarter of the previous year. Net income was USD 471.4 million, a slight decrease of 0.1% year over year. This decline in revenue was largely due to decreased demand for correctional services by federal and state governments across the US. CORECIVIC reported that their cost savings initiatives were partially responsible for mitigating the decline in revenue and net income year-over-year.

These cost savings initiatives included streamlining operations and reducing overhead costs such as employee salaries, benefits, and travel. Despite the decline in revenue and net income, CORECIVIC’s stock price has remained fairly consistent over the past four quarters. This is likely due to strong investor confidence in the company’s ability to navigate difficult economic times. Overall, CORECIVIC’s fourth quarter FY 2022 earnings results show a decline in revenue and net income, but investor confidence remains high due to the company’s cost savings initiatives. The coming quarters will be a good indicator of how CORECIVIC will fare in the future.

Stock Price

On Thursday, CORECIVIC reported its fourth quarter earnings for fiscal year 2022 with mixed results. Despite the financial disappointment, the stock opened at $10.1 and closed at $11.4, a 13.1% increase from its previous closing price of $10.1. Disruptions to corporate operations and supply chains have resulted in reduced spending, which has had an impact on the company’s bottom line. The decrease in total revenue and net income was likely offset by the cost-saving measures taken by the company in response to the pandemic. Looking forward, CORECIVIC remains optimistic about its prospects for FY2023.

While revenue will likely remain down due to the pandemic, the company is confident that it can take advantage of opportunities in the market as the economy recovers. Cost savings initiatives and strategic investments should help the company to remain competitive and deliver strong returns to investors in the long term. Overall, while CORECIVIC’s fourth quarter earnings report was mixed, the company’s stock saw a significant gain on Thursday due to investors’ optimism about the future of CORECIVIC. With a focus on cost savings and strategic investments, CORECIVIC is well-positioned to navigate the current economic landscape and emerge as a leader in the industry. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Corecivic. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Corecivic. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Corecivic. More…

Key Ratios Snapshot

Some of the financial key ratios for Corecivic are shown below. More…

Analysis

GoodWhale provides investors with an opportunity to analyze CORECIVIC‘s fundamentals and make an informed decision when investing. After thorough analysis, GoodWhale has assigned a low risk rating to CORECIVIC, meaning that it is considered a secure investment in terms of both financial and business aspects. GoodWhale also detected one risk warning in the balance sheet, although the details of this are only available to registered users. In terms of financial fundamentals, CORECIVIC has a low debt-to-equity ratio which indicates that it is not overburdened with debt and so has the freedom to pursue further growth. The company also has a healthy return on assets metric, suggesting that it is investing its assets wisely. In terms of its business fundamentals, CORECIVIC has an attractive competitive position in the market and a strong track record of delivering high quality products and services to its customers. Overall, GoodWhale’s analysis of CORECIVIC’s fundamentals suggests that it is a low risk investment with potential for future growth. However, investors should always be mindful of the risk warnings detected in the balance sheet and make sure they do the appropriate due diligence before investing. More…

Peers

The Company operates through its subsidiaries, CoreCivic Properties and CoreCivic Communities. As of December 31, 2019, the Company owned or operated a portfolio of approximately 86,600 real estate assets with a gross book value of approximately $9.9 billion. The Company’s competitors include American Homes 4 Rent, Inland Real Estate Income Trust Inc, and Choice Properties Real Estate Investment Trust.

– American Homes 4 Rent ($NYSE:AMH)

American Homes 4 Rent is a real estate investment trust that acquires, renovates, leases, and manages single-family homes in the United States. As of December 31, 2020, the company owned 53,545 homes in 22 states.

– Inland Real Estate Income Trust Inc ($OTCPK:INRE)

Inland Real Estate Income Trust Inc is a real estate investment trust that focuses on generating income through investments in real estate. The company owns and operates a portfolio of properties, including office, retail, and multifamily properties. Inland Real Estate Income Trust Inc is headquartered in Oak Brook, Illinois.

– Choice Properties Real Estate Investment Trust ($TSX:CHP.UN)

Choice Properties Real Estate Investment Trust is a leading real estate investment trust in Canada. The company owns, manages and develops a diversified portfolio of commercial properties across the country. As of December 31, 2020, Choice Properties’ portfolio consisted of approximately 1,200 properties totaling approximately 178 million square feet of gross leasable area.

Summary

Investing in CORECIVIC presents an opportunity for investors interested in taking a long-term approach. Despite reporting a slight decrease in net income for the fourth quarter of fiscal year 2022, the company has shown resilience in other areas. Revenue decreased 12.8% year-over-year, but the stock price moved up the same day. This suggests that investors are confident in the company’s ability to continue to be profitable.

This indicates the company has enough liquidity to cover its short-term obligations. In conclusion, CORECIVIC presents an attractive long-term investment opportunity as they have solid financials, resilient revenue streams, and a stock price that has responded positively to recent earnings reports. Investors should consider the company’s fundamentals and financials before making any investment decisions.