Cornell Cos. Lowers Fiscal 2009 Outlook

HOUSTON (AP) — Shares of Cornell Cos. slipped on Wednesday, after the correctional facility company lowered its fiscal 2009 profit outlook mostly below Wall Street expectations, expecting a facility to remain empty for the year.

Shares slipped $2.57, or 13.6 percent, to $16.32 in afternoon trading.

Cornell said the Georgia Department of Corrections won't start using an expanded facility at D. Ray James Prison in Georgia.

Prior yearly guidance of $1.70 to $1.78 per share assumed that the 700-bed expansion at the prison would start to ramp at the start of the third quarter.

The company now expects full-year earnings between $1.62 and $1.70 and reaffirmed it sees second-quarter earnings between 42 cents and 46 cents per share.

Analysts polled by Thomson Reuters expect earnings of 44 cents for the second quarter and $1.70 per share for the year.

As of March 31, the company had 70 facilities nationwide.