Corrections Corp. of America has signed an agreement with California City, Calif., officials to house hundreds of federal inmates at a prison it had planned to shut down next month.
The contract, which will result in U.S. Marshals Service inmates moving in early next month, is for 15 years  and CCA officials expect about 1,200 USMS prisoners will be at the site by next fall.
The Nashville-based company has raised its full-year earnings per share guidance to between $1.34 and $1.37, up from $1.26 to $1.30. (Analysts' consensus is $1.28 per share.) The hike – which is the result of this new contract as well as a temporary boost in USMS volumes – almost makes up for the loss early this year  of a Bureau of Prisons contract that had kept CCA's California City facility occupied.
But the company added that fourth-quarter profits will drop from Q3's because "margins per man-day will be negatively impacted [...] as populations are removed from facilities that are operating at very high occupancy levels and moved into facilities that will operate initially at lower occupancy levels."
Shares of CCA (Ticker: CXW ) are up more than 3 percent in pre-market trading. Year to date, they've lost about 8 percent of their value.