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Why Is Acadia Healthcare (ACHC) Down 2.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Acadia Healthcare (ACHC - Free Report) . Shares have lost about 2.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Acadia Healthcare due for a breakout? 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 Q4 Earnings Miss on Rising Costs
Acadia Healthcare Company, Inc.reported fourth-quarter 2022 adjusted earnings of 70 cents per share, missing the Zacks Consensus Estimate of 74 cents. The bottom line improved from 67 cents per share a year ago.
Total revenues of $675.3 million rose from $593.5 million in the prior-year quarter. The top line outpaced the consensus mark by 2.5%.
Weaker-than-expected earnings were caused by an elevated expense level. The negatives were partially offset by solid demand for behavioral health services, improved admissions and rising revenues per patient day.
Q4 Operations
Total U.S. same-facility revenues rose 9.4% year over year to $645.1 million. The improvement came on the back of 5.2% growth in revenue per patient day and a 4% rise in patient days. Average length of stay increased 1.4% year over year in the fourth quarter. Admissions moved up 2.6% year over year, beating the Zacks Consensus Estimate by 2.7%.
In the overall U.S. facility, revenues rose 13.8% year over year to $675.3 million, while patient days rose 7.3% year over year. Revenue per patient day grew 6% year over year in the quarter under review, while admissions increased 8.6%, beating the Zacks Consensus Estimate by 6.7%.
Adjusted EBITDA of $150.9 million declined from $156.1 million a year ago. The adjusted EBITDA margin contracted 400 basis points year over year to 22.3%. Adjusted EBITDA, excluding income from the provider relief fund, ascended to $145.7 million in the fourth quarter from $138.2 million a year ago.
Total expenses escalated to $587.2 million from $497.4 million a year ago mainly due to increased salaries, wages and benefits, supply costs, transaction-related expenses, and professional fees.
Acadia Healthcare added 80 beds to its existing operations in the fourth quarter.
Financial Update (as of Dec 31, 2022)
Acadia Healthcare exited the fourth quarter with cash and cash equivalents of $97.6 million, which plunged from the 2021-end level of $133.8 million. It had $525 million left under its $600-million revolving credit facility at the fourth-quarter end.
Total assets of $4,987.9 million increased from the figure of $4,768.1 million in 2021 end.
Long-term debt amounted to $1,364.5 million, down from $1,478.6 million as of Dec 31, 2021. The current portion of the long-term debt was $21.3 million.
Total equity improved from the 2021-end level of $2,517.5 million to $2,812.7 million. Net leverage ratio was 2.1X at the fourth-quarter end.
In 2022, net cash provided by operating activities increased from the prior-year level of $374.5 million to $380.6 million.
2023 Outlook
Revenues are estimated to be $2,820-$2,880 million, indicating a rise from the 2022 reported figure of $2,610.4 million.
Acadia Healthcare intends to add 300 beds through facility expansions this year. It is also on track to inaugurate a minimum of six Comprehensive Treatment Centers in 2023.
Adjusted EBITDA is anticipated between $635 million and $675 million, higher than the 2022 level of $615.1 million.
Adjusted EPS is estimated to be $3.10-$3.40 per share, indicating an increase from the 2022 reported figure of $3.01.
Interest expenses are anticipated to be $80-$85 million for 2023. Acadia Healthcare expects the tax rate to be 25-26%.
Operating cash flows for 2023 are expected to be $450-$500 million, suggesting a rise from the 2022 level of $380.6 million.
Capital expenditure for expansion initiatives are predicted to stay between $350 million and $400 million. The same for maintenance is projected to be $40-$50 million. Also, IT capital expenditure are expected to be $35-$45 million.
1Q23 Guidance
For the first quarter, revenues are expected to be $690-$700 million. Adjusted EBITDA is likely to be $145-$150 million. Acadia Healthcare expects adjusted EPS of 70-74 cents for the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Acadia Healthcare has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Acadia Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Acadia Healthcare (ACHC) Down 2.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Acadia Healthcare (ACHC - Free Report) . Shares have lost about 2.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Acadia Healthcare due for a breakout? 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 Q4 Earnings Miss on Rising Costs
Acadia Healthcare Company, Inc. reported fourth-quarter 2022 adjusted earnings of 70 cents per share, missing the Zacks Consensus Estimate of 74 cents. The bottom line improved from 67 cents per share a year ago.
Total revenues of $675.3 million rose from $593.5 million in the prior-year quarter. The top line outpaced the consensus mark by 2.5%.
Weaker-than-expected earnings were caused by an elevated expense level. The negatives were partially offset by solid demand for behavioral health services, improved admissions and rising revenues per patient day.
Q4 Operations
Total U.S. same-facility revenues rose 9.4% year over year to $645.1 million. The improvement came on the back of 5.2% growth in revenue per patient day and a 4% rise in patient days. Average length of stay increased 1.4% year over year in the fourth quarter. Admissions moved up 2.6% year over year, beating the Zacks Consensus Estimate by 2.7%.
In the overall U.S. facility, revenues rose 13.8% year over year to $675.3 million, while patient days rose 7.3% year over year. Revenue per patient day grew 6% year over year in the quarter under review, while admissions increased 8.6%, beating the Zacks Consensus Estimate by 6.7%.
Adjusted EBITDA of $150.9 million declined from $156.1 million a year ago. The adjusted EBITDA margin contracted 400 basis points year over year to 22.3%. Adjusted EBITDA, excluding income from the provider relief fund, ascended to $145.7 million in the fourth quarter from $138.2 million a year ago.
Total expenses escalated to $587.2 million from $497.4 million a year ago mainly due to increased salaries, wages and benefits, supply costs, transaction-related expenses, and professional fees.
Acadia Healthcare added 80 beds to its existing operations in the fourth quarter.
Financial Update (as of Dec 31, 2022)
Acadia Healthcare exited the fourth quarter with cash and cash equivalents of $97.6 million, which plunged from the 2021-end level of $133.8 million. It had $525 million left under its $600-million revolving credit facility at the fourth-quarter end.
Total assets of $4,987.9 million increased from the figure of $4,768.1 million in 2021 end.
Long-term debt amounted to $1,364.5 million, down from $1,478.6 million as of Dec 31, 2021. The current portion of the long-term debt was $21.3 million.
Total equity improved from the 2021-end level of $2,517.5 million to $2,812.7 million. Net leverage ratio was 2.1X at the fourth-quarter end.
In 2022, net cash provided by operating activities increased from the prior-year level of $374.5 million to $380.6 million.
2023 Outlook
Revenues are estimated to be $2,820-$2,880 million, indicating a rise from the 2022 reported figure of $2,610.4 million.
Acadia Healthcare intends to add 300 beds through facility expansions this year. It is also on track to inaugurate a minimum of six Comprehensive Treatment Centers in 2023.
Adjusted EBITDA is anticipated between $635 million and $675 million, higher than the 2022 level of $615.1 million.
Adjusted EPS is estimated to be $3.10-$3.40 per share, indicating an increase from the 2022 reported figure of $3.01.
Interest expenses are anticipated to be $80-$85 million for 2023. Acadia Healthcare expects the tax rate to be 25-26%.
Operating cash flows for 2023 are expected to be $450-$500 million, suggesting a rise from the 2022 level of $380.6 million.
Capital expenditure for expansion initiatives are predicted to stay between $350 million and $400 million. The same for maintenance is projected to be $40-$50 million. Also, IT capital expenditure are expected to be $35-$45 million.
1Q23 Guidance
For the first quarter, revenues are expected to be $690-$700 million. Adjusted EBITDA is likely to be $145-$150 million. Acadia Healthcare expects adjusted EPS of 70-74 cents for the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Acadia Healthcare has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Acadia Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.