Acadia Healthcare Surpasses Earnings Estimate Amid Revenue Shortfall
Earnings Performance Tops Expectations
Acadia Healthcare (ACHC) recently announced quarterly earnings of $0.91 per share, slightly above the Zacks Consensus Estimate of $0.90. This performance mirrors last year’s earnings of $0.91 per share and has been adjusted for non-recurring items.
The latest report marks an earnings surprise of 1.11%. In the previous quarter, Acadia was also expected to earn $0.88 per share but exceeded that by posting $0.91, achieving a surprise of 3.41%.
Over the last four quarters, the company successfully surpassed consensus EPS estimates each time.
Revenue Insights and Market Context
For the quarter ending in September 2024, Acadia Healthcare reported revenues of $815.63 million, falling short of the Zacks Consensus Estimate by 0.40%. In comparison, revenues stood at $750.33 million a year earlier. While Acadia has successfully surpassed consensus revenue estimates in two of the last four quarters, this recent shortfall raises some concerns.
The future trajectory of the stock’s price will largely depend on management’s insights during the upcoming earnings call.
Since the start of this year, Acadia Healthcare shares have declined by approximately 33.6%, contrasting with the S&P 500’s gain of 22.3%.
Future Prospects for Acadia Healthcare
Despite this year’s underperformance, investors are keen to understand the outlook for Acadia Healthcare moving forward. While there are no straightforward answers, analyzing the company’s earnings outlook can provide guidance. This outlook encompasses current earnings expectations and any recent changes in estimates.
Research indicates a strong link between stock performance and earnings estimate revisions. Investors may track these revisions independently or use reliable tools like the Zacks Rank, which has demonstrated effectiveness in evaluating earnings trends.
Leading up to this earnings release, Acadia Healthcare’s estimate revisions trend is mixed. Although the recent performance may change estimates, the stock currently holds a Zacks Rank #3 (Hold), suggesting it’s expected to perform in line with the market in the near term. The upcoming consensus EPS estimate stands at $0.85 on $817.81 million in revenues for the next quarter and $3.51 on $3.2 billion for the current fiscal year.
Investors should also consider that the industry outlook can significantly influence stock performance. Currently, the Medical – Hospital sector ranks in the top 20% of over 250 Zacks industries. Historical performance shows that the top-performing half of Zacks-ranked industries significantly outperforms the bottom half.
Coherus BioSciences: A Sector Comparison
Another company in the Zacks Medical sector, Coherus BioSciences (CHRS), has yet to release its results for the quarter ending September 2024. It is projected to report a quarterly loss of $0.10 per share, which denotes a 63% improvement year-over-year. The consensus EPS estimate for this quarter has remained steady over the past month.
Coherus BioSciences is expected to generate revenues of $56.87 million, down 23.7% compared to the same quarter last year.
Is Acadia Healthcare Worth the Investment?
For potential investors, it’s vital to assess whether Acadia Healthcare Company, Inc. (ACHC) aligns with your investment strategy. For insights into other promising stocks, Zacks Investment Research offers a free report highlighting the seven best stocks to consider over the next 30 days.
Since 1978, Zacks Investment Research has been dedicated to providing investors with analytical tools and unbiased research. The Zacks Rank stock-rating system has historically outperformed the S&P 500, achieving an average gain of +24.08% annually from January 1, 1988, through May 6, 2024.
Curious about the latest stock recommendations from Zacks? You can download reports on five stocks projected to double.
Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report
Coherus BioSciences, Inc. (CHRS): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
