A month has gone by since the last earnings report for Acadia Healthcare (ACHC - Free Report) . Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Acadia Healthcare due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Acadia Healthcare Q2 Earnings Top Estimates, Fall Y/Y
Acadia Healthcare's second-quarter 2020 earnings of 54 cents per share beat the Zacks Consensus Estimate by 42.11%. However, the bottom line was down 11.5% year over year.
Further, the company’s revenues of $750.3 million missed the Zacks Consensus Estimate by 0.54% and also dipped 5% year over year.
Total same facility revenues slipped 3.5% to $727 million due to 2.3% decrease in patient days and a 1.2% decline in revenue per patient day.
Consolidated adjusted EBITDA was $144.4 million, down 9.1% year over year.
Consolidated EBITDA margin on same facility basis was 23.3%, contracting 60 basis points year over year.
Total expenses slid 4% year over year to $700.4 million on the back of lower salaries and wages, professional fees plus supplies and other operating expenses.
During the first half of 2020, the company added 106 beds to its U.S. operations. In mid-July, it announced the opening of its 144-bed behavioral health facility.
U.S. same facility revenues were down 3.4% year over year to $501.2 million.
The segment also recorded a 0.7% year-over-year decrease in patient days and a 2.7% decline in revenue per patient day.
U.K. same facility revenues were down 3.8% year over year to $249.3 million. The number of patient days slid 4.5% from the year-earlier period whereas revenue per patient per day inched up 0.7%.
Financial Update (as of Jun 30, 2020)
Cash and cash equivalents were $212 million, down 34.8% from the level on Dec 31, 2019.
Long-term debt was $3.08 billion, down 0.9% from the figure as of Dec 31, 2019.
Net cash provided by operating activities for the six months ended Jun 30, 2020 was $264.9 million, up 106% year over year.
The company exited the quarter with total assets worth $6.8 billion, down 0.7% from the level as of Dec 31, 2019.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 8.76% due to these changes.
At this time, Acadia Healthcare has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Acadia Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.