Corrections Corp 3Q profit up, but misses Street

The company also cut its profit forecast for the fourth quarter and full year, sending its shares lower in afternoon trading.

For the three months ended Sept. 30, Corrections Corp. earned $37.9 million, or 30 cents per share, compared with $33.3 million, or 26 cents per share, in the prior-year period.

Revenue increased 9 percent to $411.9 million from $378.3 million during the same period in 2007

Analysts polled by Thomson Reuters, on average, expected profit of 31 cents per share, on revenue of $417.3 million for the quarter.

Corrections Corp. said the revenue increase "was predominantly due to higher inmate populations from the state of California," combined with increases in the per-diem price paid for caring for inmates from several federal and state contracts.

Revenue from federal customers rose 5 percent to $158.7 million, while revenue from state customers increased 16 percent to $214 million. The average number of state inmate populations rose 9 percent to 50,025 during the quarter, with the boosts primarily from California, Idaho and Colorado.

The total average daily compensated population increased 5.4 percent to 77,695. The occupancy rate fell 95.3 percent from 97.9 percent during the third quarter of 2007 as a result of an 8.2 increase in the average number of beds available.

Corrections Corp. shares fell $2.46, or 13 percent, to $16.39 in early afternoon trading. The stock has changed hands between $15.35 and $31.58 in the past year.