Overview

• Acadia Healthcare Q3 revenue grows 4.4% yr/yr, slightly beating analyst expectations

• Adjusted EBITDA for Q3 misses analyst expectations, reflecting lower volumes and startup losses

• The provider of inpatient behavioral health care services lowers FY guidance for revenue, adjusted EBITDA, and adjusted EPS

Outlook

• Acadia lowers full-year revenue guidance to $3.28 bln-$3.30 bln

• Company reduces full-year adjusted EBITDA guidance to $650 mln-$660 mln

• Acadia cuts full-year adjusted EPS forecast to $2.35-$2.45

Result Drivers

• ADMISSIONS GROWTH - Same-facility admissions increased 3.3% due to targeted referral initiatives

• PORTFOLIO OPTIMIZATION - Co is optimizing its portfolio to reduce capital expenditures and increase free cash flow

• STARTUP LOSSES - Startup losses from new facilities totaled $13.3 mln, impacting adjusted EBITDA

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Acadia Healthcare Company Inc is $28.00, about 26.2% above its November 4 closing price of $20.66

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBwbvCShga

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)