Corrections Corp. cuts 4th-qtr, full-year outlook

The private prison operator also posted third-quarter profit results that fell short of Wall Street expectations, and shares fell sharply.

The company now expects fourth-quarter profit between 30 cents and 32 cents per share, down from its prior outlook of 33 cents to 35 cents per share.

Analysts polled by Thomson Reuters, on average, expect profit of 34 cents per share in the fourth quarter, with estimates ranging from 33 cents to 35 cents per share.

For the year, Corrections Corp. now expects profit between $1.18 to $1.20 per share, below its previous forecast of $1.21 to $1.24 per share.

Analysts expect profit for the year, on average, of $1.23, with estimates ranging from $1.21 to $1.24 per share.

The company said the guidance reduction reflects delays in California inmate transfers to its Tallahatchie County Correctional Facility in Tutwiler, Miss., and delays in an expected increase in California inmates to other facilities. The cut also incorporates delays in contract negotiations with the U.S. Marshalls Service and recent and projected reductions in inmate populations from the states of Washington and Minnesota.

Corrections Corp. shares fell $2.46, or 13 percent, to $16.39 in early afternoon trading.