We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Acadia Healthcare (ACHC) Stock Up 3% on Q2 Earnings Beat
Read MoreHide Full Article
Shares of Acadia Healthcare Company, Inc. (ACHC - Free Report) have gained 3.3% since it reported second-quarter 2022 results on Jul 27. The quarterly results benefited from improved revenues on account of solid demand for its behavioral health services, higher revenue per patient day and increased patient days. Raised earnings per share (EPS) guidance for 2022 might have buoyed investors’ sentiments about the stock. However, the upside was partly offset by an elevated cost level and the prevailing labor headwinds across the United States.
Acadia Healthcare reported second-quarter 2022 adjusted earnings of 84 cents per share, which outpaced the Zacks Consensus Estimate by 9.1%. The bottom line climbed 18.3% year over year.
ACHC’s revenues amounted to $651.7 million in the quarter under review, up 11.9% year over year. The top line beat the consensus mark by a whisker.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Total U.S. same facility revenues were $626.6 million, which improved 8.5% year over year in the second quarter. The growth can be attributed to a 7.8% rise in revenue per patient day and a 0.7% increase in patient days. Average length of stay rose 5.4% year over year. However, admissions declined 4.5% year over year.
Within the overall U.S. facility, patient days and revenue per patient day grew 3.1% and 8.6%, respectively, on a year-over-year basis.
Adjusted EBITDA climbed 11.4% year over year to $157.3 million. Adjusted EBITDA margin deteriorated 20 basis points year over year to 24.1%.
Total expenses of $542.1 million escalated 4.8% year over year, primarily due to increased salaries, wages and benefits, professional fees, supplies and other operating expenses.
Acadia Healthcare added 50 beds to its existing operations during the second quarter.
Financial Update (as of Jun 30, 2022)
ACHC exited the second quarter with cash and cash equivalents of $128.4 million, which fell 4.1% from the 2021-end level.
Total assets of $4,882.6 million increased 2.4% from the figure at the 2021 end.
Long-term debt amounted to $1,384.1 million, which decreased 6.4% from the figure as of Dec 31, 2021. The current portion of the long-term debt was $21.3 million.
Total equity of $2,663 million increased 5.8% from the 2021-end level. Long-term debt to capitalization was 35.4% at the second-quarter end.
During the six months ended Jun 30, 2022, net cash provided by operating activities surged 35.7% from the prior-year comparable period to $226 million.
2022 Outlook
Management revised full-year guidance with respect to most of the metrics.
Revenues are now anticipated within $2.56-$2.60 billion, while the earlier view expected the metric to be within $2.55-$2.60 billion. The mid-point of the revised guidance indicates a rise of 12.2% from the 2021 reported figure.
Acadia Healthcare aims to add around 300 beds to its existing facilities in 2022. The third quarter of 2022 is likely to be the quarter with the highest number of bed additions this year, with 150 added to its existing facilities.
Adjusted EBITDA is estimated to lie within $583-$613 million, up from the prior guidance of $575-$610 million. The mid-point of the updated outlook suggests 10.6% growth from the 2021 figure.
Adjusted EPS is projected within $2.93-$3.18, higher than the earlier view of $2.85-$3.15. The mid-point of the revised guidance reflects an increase of 19.3% from the 2021 reported figure.
Interest expense is anticipated within $67-$70 million compared with the previous outlook of $65-$70 million.
Operating cash flows for 2022 are expected between $380 million and $430 million, while the prior outlook called for the metric to be within $350-$400 million.
Capital expenditures for expansion initiatives are predicted within $240-$280 million, lower than the previous guidance of $290-$340 million. The same for maintenance is continued to be projected to be around $50 million.
Of the Medical sector players that have reported second-quarter results so far, the bottom lines of Humana Inc. (HUM - Free Report) , Centene Corporation (CNC - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate.
Humana reported second-quarter 2022 adjusted earnings per share of $8.67, which outpaced the Zacks Consensus Estimate by 13%. The bottom line improved 26% year over year. Revenues of Humana amounted to $23.7 billion, which increased 15% year over year in the second quarter. The top line beat the consensus mark by 1.2%. Total premiums of HUM climbed 11.5% year over year in the quarter under review, while revenues from services increased nearly three-fold year over year.
Centene Corporation’s second-quarter 2022 adjusted earnings per share of $1.77 surpassed the Zacks Consensus Estimate by 2.3%. The bottom line increased from $1.25 per share a year ago. Total revenues of Centene rose 16% year over year to $35,936 million in the second quarter. The top line beat the consensus mark by 1.1%. While CNC’s revenues from Medicaid rose 8% year over year in the second quarter, revenues from Commercial and Medicare jumped 11% and 26%, respectively.
Universal Health reported second-quarter 2022 adjusted earnings of $2.20 per share, which outpaced the Zacks Consensus Estimate by 5.8%. However, the bottom line plunged 41.5% year over year. Net revenues of Universal Health grew 3.9% year over year to $3.3 billion in the second quarter. The top line beat the consensus mark by a whisker. UHS’s total operating costs of $3.1 billion escalated 12% year over year in the quarter under review.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Acadia Healthcare (ACHC) Stock Up 3% on Q2 Earnings Beat
Shares of Acadia Healthcare Company, Inc. (ACHC - Free Report) have gained 3.3% since it reported second-quarter 2022 results on Jul 27. The quarterly results benefited from improved revenues on account of solid demand for its behavioral health services, higher revenue per patient day and increased patient days. Raised earnings per share (EPS) guidance for 2022 might have buoyed investors’ sentiments about the stock. However, the upside was partly offset by an elevated cost level and the prevailing labor headwinds across the United States.
Acadia Healthcare reported second-quarter 2022 adjusted earnings of 84 cents per share, which outpaced the Zacks Consensus Estimate by 9.1%. The bottom line climbed 18.3% year over year.
ACHC’s revenues amounted to $651.7 million in the quarter under review, up 11.9% year over year. The top line beat the consensus mark by a whisker.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Acadia Healthcare Company, Inc. price-consensus-eps-surprise-chart | Acadia Healthcare Company, Inc. Quote
Q2 Operations
Total U.S. same facility revenues were $626.6 million, which improved 8.5% year over year in the second quarter. The growth can be attributed to a 7.8% rise in revenue per patient day and a 0.7% increase in patient days. Average length of stay rose 5.4% year over year. However, admissions declined 4.5% year over year.
Within the overall U.S. facility, patient days and revenue per patient day grew 3.1% and 8.6%, respectively, on a year-over-year basis.
Adjusted EBITDA climbed 11.4% year over year to $157.3 million. Adjusted EBITDA margin deteriorated 20 basis points year over year to 24.1%.
Total expenses of $542.1 million escalated 4.8% year over year, primarily due to increased salaries, wages and benefits, professional fees, supplies and other operating expenses.
Acadia Healthcare added 50 beds to its existing operations during the second quarter.
Financial Update (as of Jun 30, 2022)
ACHC exited the second quarter with cash and cash equivalents of $128.4 million, which fell 4.1% from the 2021-end level.
Total assets of $4,882.6 million increased 2.4% from the figure at the 2021 end.
Long-term debt amounted to $1,384.1 million, which decreased 6.4% from the figure as of Dec 31, 2021. The current portion of the long-term debt was $21.3 million.
Total equity of $2,663 million increased 5.8% from the 2021-end level. Long-term debt to capitalization was 35.4% at the second-quarter end.
During the six months ended Jun 30, 2022, net cash provided by operating activities surged 35.7% from the prior-year comparable period to $226 million.
2022 Outlook
Management revised full-year guidance with respect to most of the metrics.
Revenues are now anticipated within $2.56-$2.60 billion, while the earlier view expected the metric to be within $2.55-$2.60 billion. The mid-point of the revised guidance indicates a rise of 12.2% from the 2021 reported figure.
Acadia Healthcare aims to add around 300 beds to its existing facilities in 2022. The third quarter of 2022 is likely to be the quarter with the highest number of bed additions this year, with 150 added to its existing facilities.
Adjusted EBITDA is estimated to lie within $583-$613 million, up from the prior guidance of $575-$610 million. The mid-point of the updated outlook suggests 10.6% growth from the 2021 figure.
Adjusted EPS is projected within $2.93-$3.18, higher than the earlier view of $2.85-$3.15. The mid-point of the revised guidance reflects an increase of 19.3% from the 2021 reported figure.
Interest expense is anticipated within $67-$70 million compared with the previous outlook of $65-$70 million.
Operating cash flows for 2022 are expected between $380 million and $430 million, while the prior outlook called for the metric to be within $350-$400 million.
Capital expenditures for expansion initiatives are predicted within $240-$280 million, lower than the previous guidance of $290-$340 million. The same for maintenance is continued to be projected to be around $50 million.
Zacks Rank
Acadia Healthcare currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported second-quarter results so far, the bottom lines of Humana Inc. (HUM - Free Report) , Centene Corporation (CNC - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate.
Humana reported second-quarter 2022 adjusted earnings per share of $8.67, which outpaced the Zacks Consensus Estimate by 13%. The bottom line improved 26% year over year. Revenues of Humana amounted to $23.7 billion, which increased 15% year over year in the second quarter. The top line beat the consensus mark by 1.2%. Total premiums of HUM climbed 11.5% year over year in the quarter under review, while revenues from services increased nearly three-fold year over year.
Centene Corporation’s second-quarter 2022 adjusted earnings per share of $1.77 surpassed the Zacks Consensus Estimate by 2.3%. The bottom line increased from $1.25 per share a year ago. Total revenues of Centene rose 16% year over year to $35,936 million in the second quarter. The top line beat the consensus mark by 1.1%. While CNC’s revenues from Medicaid rose 8% year over year in the second quarter, revenues from Commercial and Medicare jumped 11% and 26%, respectively.
Universal Health reported second-quarter 2022 adjusted earnings of $2.20 per share, which outpaced the Zacks Consensus Estimate by 5.8%. However, the bottom line plunged 41.5% year over year. Net revenues of Universal Health grew 3.9% year over year to $3.3 billion in the second quarter. The top line beat the consensus mark by a whisker. UHS’s total operating costs of $3.1 billion escalated 12% year over year in the quarter under review.