CoreCivic shares fall as feds terminate detention-facility contract

By Ben Glickman

Shares of CoreCivic fell late on Monday after the company confirmed it would take a financial hit from a terminated contract for a Texas border facility.

The stock (CXW) was down 2.4%, to $14.43, in after-hours trading, following a 4.1% drop on a prior Wall Street Journal report of the news. Shares are up less than 2% this year, as of Monday's close.

The company said that U.S. Immigration and Customs Enforcement would end a service agreement for its facility in Dilley, Texas, which is currently being used for detaining single adults. The facility generated $156.6 million in revenue for the company in 2023, about 16% of total revenue on the year.

CoreCivic withdrew its guidance for the year but said it expected the move by ICE would lead to a 38 cent-to-41 cent reduction in earnings per share.

The Journal reported before the market closed that the Biden administration would shut the detention center as it looks to free up resources.

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06-10-24 2002ET

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