A month has gone by since the last earnings report for Acadia Healthcare (ACHC Quick QuoteACHC - Free Report) . Shares have added about 9.6% 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 Q1 Earnings Beat Estimates

Acadia Healthcare came out with quarterly earnings of 42 cents per share, beating the Zacks Consensus Estimate of 37 cents per share. This further compares favorably with earnings of 39 cents per share a year ago.

The company’s revenues of $782.81 million for the quarter ended March 2020 missed the Zacks Consensus Estimate by 1.06%. This compares favorably with the year-ago revenues of $760.62 million.

Total same facility revenues grew 3.4% to $750.5 million with 1.2% increase in patient days and a 2.2% rise in revenues per patient day.

Consolidated EBITDA margin on same facility basis was 21.1%, contracting 100 basis points year over year.

Total expenses inched up 2.6% year over year to $742.9 million on the back of higher salaries and wages, professional fees, supplies and other operating expenses.

The company added 78 beds to its U.S. operations during the first quarter.

Segment Details

U.S. same facility revenues were up 4.1% year over year to $501.2 million.
The segment also recorded a 2.9% year-over-year increase in patient days and 1.2% growth in revenue per patient day.

U.K. same facility revenues rose 1.9% year over year to $249.3 million. The number of patient days slid 1% from the year-earlier period whereas revenues per patient per day were up 3%.

Acadia Healthcare’s consolidated adjusted EBITDA was $132.8 million, down 2.4% year over year.

Financial Update (as of Mar 31, 2020)

Cash and cash equivalents were $81 million, down 34.8% from the level on Dec 31, 2019.

Long-term debt was $2.94 billion, down 5.2% from the figure as of Dec 31, 2019.

Net cash provided by operating activities for the year was $45.5 million, down 4.2% year over year.

The company exited the quarter with total assets worth $6.7 billion, down 2.3%  from the level as of Dec 31, 2019.

2020 Guidance Withdrawn

As a result of the widespread  uncertainty, stemming from the COVID-19 pandemic, Acadia scrapped its 2020 financial guidance, previously issued in its earnings release dated Feb 27, 2020.
 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -25.6% due to these changes.

VGM Scores

At this time, Acadia Healthcare has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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.