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- CoreCivic (NYSE:CXW) stock fell 5.4% in premarket trade after the company said it expects a reduction to its earnings per share.
- The reduction is because the U.S. Immigration and Customs Enforcement said it intends to end an inter-governmental service agreement between the company and itself for services at the South Texas Family Residential Center in Dilley.
- The company said it estimates the annualized financial impact to be a reduction to earnings per share of ~$0.38 to $0.41.
- “Given that the notice of termination was received today and based on cost uncertainties associated with the closure, CoreCivic is suspending its financial guidance for 2024,” the firm said.
- For the year ended December 31, and for the quarter ended March 31, total revenues at the facility were $156.6 million and $39.3 million, respectively.
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