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Acadia Healthcare (ACHC) Eyes Over 600 Bed Additions in 2022
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Acadia Healthcare Company, Inc. (ACHC - Free Report) recently highlighted its upcoming expansion plans, which include beds additions through 2024. Its latest investor presentation provided glimpses of its long-term growth-driving initiatives and the current market scenario.
Last year, Acadia Healthcare added 681 beds, including 295 beds through facility expansion in seven states and around 300 beds through the CenterPointe acquisition. For this year, the company is eyeing an addition of more than 600 beds, including 300 through facility expansions in eight states. It has two de novo projects in Chicago and Indio, CA, which are expected to add a total of around 140 beds, besides six to 10 CTC locations. The rest are expected to come from joint ventures and acquisitions.
For 2023 and 2024, Acadia Healthcare aims to add 800-1,100 beds per year with several joint ventures and partnerships, and de novo projects. The bed additions will likely enhance the company’s revenue generation abilities, especially at a time when revenue per patient day is on the rise. For 2022, the company expects its revenues to jump to $2.55-$2.60 billion, indicating an increase from the 2021 level of $2.3 billion. Also, adjusted earnings per share are forecast within $2.85-$3.15, calling for a rise from the 2021 level of $2.56. In comparison, the Zacks Consensus Estimate for the 2022 bottom line is currently pegged at $2.99 per share, signaling a 16.8% year-over-year rise.
The company’s focus on adding beds and acquiring profitable businesses is likely to boost its market share in a highly fragmented industry. According to ACHC, it accounts for 3.7% of the $30-billion mental health market, 2% of the $25-billion substance use market and 10% of the opioid use disorder market. The company intends to expand its reach and provide patients with the required care and support as demand for quality mental health services keeps surging. The percentage of adults with depressive symptoms in the United States has jumped from 8.5% before the pandemic to 33% in 2021.
The outlook for the overall hospital space is encouraging at the moment, with the declining intensity of COVID-related headwinds as hospital companies are witnessing higher patient volumes and demand for elective procedures. As such, Acadia Healthcare’s adjusted EBITDA is projected to be $575-$610 million for 2022, signaling an increase from $558.7 million in 2021. It expects operating cash flows (inclusive of $39 million of CARES Act repayments) for the year to be $350-$400 million. Other players in the hospital space, including HCA Healthcare Inc. (HCA - Free Report) , Universal Health Services Inc. (UHS - Free Report) and Tenet Healthcare Corporation (THC - Free Report) , also provided encouraging 2022 projections.
HCA Healthcare expects 2022 revenues in the band of $60-$62 billion, the midpoint of which is 3.8% higher than the 2021 figure. Net income is expected between $5.55 billion and $5.835 billion. HCA Healthcare forecasts adjusted EBITDA between $12.55 billion and $13.05 billion, indicating a 1.2% hike from the 2021 reported figure.
Universal Health projects 2022 net revenues within $13.4-$13.7 billion, indicating an increase from $12.6 billion a year ago. UHS’ adjusted earnings per share forecast of $11.90-$12.90 indicates an increase from $11.82 in 2021. Universal Health is likely to increase capital expenditures this year to expand its business.
Tenet Healthcare’s net operating revenues for 2022 are anticipated within $19.5-$19.9 billion, the midpoint of which indicates an upside of 1.1% from the 2021 reported figure. Also, THC’s adjusted EBITDA for 2022 is estimated at $3.375-$3.575 billion, suggesting 6% core growth from 2021’s reported figure.
Zacks Rank & Price Performance
Acadia Healthcare currently has a Zacks Rank #3 (Hold). The company’s shares increased 8.3% in the past year compared with 28.6% growth of the industry it belongs to.
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Acadia Healthcare (ACHC) Eyes Over 600 Bed Additions in 2022
Acadia Healthcare Company, Inc. (ACHC - Free Report) recently highlighted its upcoming expansion plans, which include beds additions through 2024. Its latest investor presentation provided glimpses of its long-term growth-driving initiatives and the current market scenario.
Last year, Acadia Healthcare added 681 beds, including 295 beds through facility expansion in seven states and around 300 beds through the CenterPointe acquisition. For this year, the company is eyeing an addition of more than 600 beds, including 300 through facility expansions in eight states. It has two de novo projects in Chicago and Indio, CA, which are expected to add a total of around 140 beds, besides six to 10 CTC locations. The rest are expected to come from joint ventures and acquisitions.
For 2023 and 2024, Acadia Healthcare aims to add 800-1,100 beds per year with several joint ventures and partnerships, and de novo projects. The bed additions will likely enhance the company’s revenue generation abilities, especially at a time when revenue per patient day is on the rise. For 2022, the company expects its revenues to jump to $2.55-$2.60 billion, indicating an increase from the 2021 level of $2.3 billion. Also, adjusted earnings per share are forecast within $2.85-$3.15, calling for a rise from the 2021 level of $2.56. In comparison, the Zacks Consensus Estimate for the 2022 bottom line is currently pegged at $2.99 per share, signaling a 16.8% year-over-year rise.
The company’s focus on adding beds and acquiring profitable businesses is likely to boost its market share in a highly fragmented industry. According to ACHC, it accounts for 3.7% of the $30-billion mental health market, 2% of the $25-billion substance use market and 10% of the opioid use disorder market. The company intends to expand its reach and provide patients with the required care and support as demand for quality mental health services keeps surging. The percentage of adults with depressive symptoms in the United States has jumped from 8.5% before the pandemic to 33% in 2021.
The outlook for the overall hospital space is encouraging at the moment, with the declining intensity of COVID-related headwinds as hospital companies are witnessing higher patient volumes and demand for elective procedures. As such, Acadia Healthcare’s adjusted EBITDA is projected to be $575-$610 million for 2022, signaling an increase from $558.7 million in 2021. It expects operating cash flows (inclusive of $39 million of CARES Act repayments) for the year to be $350-$400 million. Other players in the hospital space, including HCA Healthcare Inc. (HCA - Free Report) , Universal Health Services Inc. (UHS - Free Report) and Tenet Healthcare Corporation (THC - Free Report) , also provided encouraging 2022 projections.
HCA Healthcare expects 2022 revenues in the band of $60-$62 billion, the midpoint of which is 3.8% higher than the 2021 figure. Net income is expected between $5.55 billion and $5.835 billion. HCA Healthcare forecasts adjusted EBITDA between $12.55 billion and $13.05 billion, indicating a 1.2% hike from the 2021 reported figure.
Universal Health projects 2022 net revenues within $13.4-$13.7 billion, indicating an increase from $12.6 billion a year ago. UHS’ adjusted earnings per share forecast of $11.90-$12.90 indicates an increase from $11.82 in 2021. Universal Health is likely to increase capital expenditures this year to expand its business.
Tenet Healthcare’s net operating revenues for 2022 are anticipated within $19.5-$19.9 billion, the midpoint of which indicates an upside of 1.1% from the 2021 reported figure. Also, THC’s adjusted EBITDA for 2022 is estimated at $3.375-$3.575 billion, suggesting 6% core growth from 2021’s reported figure.
Zacks Rank & Price Performance
Acadia Healthcare currently has a Zacks Rank #3 (Hold). The company’s shares increased 8.3% in the past year compared with 28.6% growth of the industry it belongs to.
Image Source: Zacks Investment Research
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.