CCA operating profit slips

But CEO Hininger hikes guidance on back of cap ex cut

Corrections Corp. of America posted a second-quarter profit of $55.7 million, more than double its number from a year earlier, when it had to book more than $36 million in costs related to its conversion to a real estate investment trust. Per diluted share, earnings came in at 49 cents, three cents better than analysts had expected and two cents above the high end of the range the company provided in May.

Operating income at Nashville-based CCA fell 4 percent to $65.5 million. The top line slipped to $411 million from $425 million a year earlier, with revenues from managed facilities accounting for almost all of that drop. Various contract losses caused revenues to drop $23.2 million from the year before, but barely affected net operating income.

Looking ahead, President and CEO Damon Hininger and his team raised their full-year earnings guidance to a range of $1.87 to $1.93 per share from the previous range of $1.84 to $1.92 per share. But they also cut their capital spending outlook to a $150 million to $165 million, taking $15 million out of ther construction and land acquisition budget.

Shares of CCA (Ticker: CXW) were up about 0.5 percent to $35.29 in early-afternoon trading. Year to date, they're up 10 percent.