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Why Is Acadia Healthcare (ACHC) Up 3.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Acadia Healthcare (ACHC - Free Report) . Shares have added about 3.9% in that time frame, outperforming 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 drivers.
Acadia Healthcare Beats on Q2 Earnings, Ups '21 EPS View
Acadia Healthcare's second-quarter 2021 adjusted earnings of 71 cents per share, outpaced the Zacks Consensus Estimate by 12.7%. The bottom line improved 31.5% year over year.
The company’s results highlight higher revenues driven by solid demand for its behavioral health services and growing patient volumes. However, the upside was partly offset by an elevated cost level.
Revenues at Acadia Healthcare improved 18.5% year over year to $582.2 million in the quarter under review. The top line beat the consensus mark by 3.8%.
Total same facility revenues rose 18% year over year on account of 9.8% improvement in patient days and 7.5% growth in revenue per patient day.
Adjusted EBITDA advanced 25.2% year over year to $141.3 million.
The company’s adjusted EBITDA margin on same facility basis came in at 29.3%, up 180 basis points (bps) year over year.
Total expenses improved 13.8% year over year to $517.2 million due to rise in salaries, wages and benefits, professional fees, supplies and other operating expenses.
In the second quarter, the company added 86 beds to its existing operations. Out of the total, 72 incremental beds resulted from opening of the replacement facility for Belmont Behavioral Hospital. The company remains well within its target of adding around 300 beds to its existing facilities through 2021-end.
Financial Update (as of Jun 30, 2021)
Acadia Healthcare exited the second quarter with cash and cash equivalents of $185.5 million, which doubled itself from the 2020-end level.
Total assets of $4.6 billion plunged 29.8% from the level at 2020 end.
Long-term debt totaled $1.4 billion, which declined 51.4% from the figure as of Dec 31, 2020.
For six months ended Jun 30, 2021, net cash provided by operating activities of $166.5 million tumbled 37.2% from the prior-year comparable period.
2021 Outlook Revised
Based on strong operating results during the first half of 2021, the company updated its 2021 guidance for certain metrics.
Revenues are now estimated between $2.28 billion and $2.32 billion for 2021, up from the prior guidance of $2.24-$2.29 billion.
Adjusted EBITDA is projected to be $530-$550 million, higher from the previous outlook of $500-$530 million.
Adjusted earnings per share is forecast within $2.50-$2.70, up from the earlier view of $2.30-$2.55.
Operating cash flows are expected to be $275-$310 million for this year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, Acadia Healthcare has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Acadia Healthcare has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Acadia Healthcare (ACHC) Up 3.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Acadia Healthcare (ACHC - Free Report) . Shares have added about 3.9% in that time frame, outperforming 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 drivers.
Acadia Healthcare Beats on Q2 Earnings, Ups '21 EPS View
Acadia Healthcare's second-quarter 2021 adjusted earnings of 71 cents per share, outpaced the Zacks Consensus Estimate by 12.7%. The bottom line improved 31.5% year over year.
The company’s results highlight higher revenues driven by solid demand for its behavioral health services and growing patient volumes. However, the upside was partly offset by an elevated cost level.
Revenues at Acadia Healthcare improved 18.5% year over year to $582.2 million in the quarter under review. The top line beat the consensus mark by 3.8%.
Total same facility revenues rose 18% year over year on account of 9.8% improvement in patient days and 7.5% growth in revenue per patient day.
Adjusted EBITDA advanced 25.2% year over year to $141.3 million.
The company’s adjusted EBITDA margin on same facility basis came in at 29.3%, up 180 basis points (bps) year over year.
Total expenses improved 13.8% year over year to $517.2 million due to rise in salaries, wages and benefits, professional fees, supplies and other operating expenses.
In the second quarter, the company added 86 beds to its existing operations. Out of the total, 72 incremental beds resulted from opening of the replacement facility for Belmont Behavioral Hospital. The company remains well within its target of adding around 300 beds to its existing facilities through 2021-end.
Financial Update (as of Jun 30, 2021)
Acadia Healthcare exited the second quarter with cash and cash equivalents of $185.5 million, which doubled itself from the 2020-end level.
Total assets of $4.6 billion plunged 29.8% from the level at 2020 end.
Long-term debt totaled $1.4 billion, which declined 51.4% from the figure as of Dec 31, 2020.
For six months ended Jun 30, 2021, net cash provided by operating activities of $166.5 million tumbled 37.2% from the prior-year comparable period.
2021 Outlook Revised
Based on strong operating results during the first half of 2021, the company updated its 2021 guidance for certain metrics.
Revenues are now estimated between $2.28 billion and $2.32 billion for 2021, up from the prior guidance of $2.24-$2.29 billion.
Adjusted EBITDA is projected to be $530-$550 million, higher from the previous outlook of $500-$530 million.
Adjusted earnings per share is forecast within $2.50-$2.70, up from the earlier view of $2.30-$2.55.
Operating cash flows are expected to be $275-$310 million for this year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, Acadia Healthcare has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Acadia Healthcare has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.