AdaptHealth Corp. (AHCO) shares plummeted 16.21% in Tuesday's trading session following the release of its third-quarter earnings report. The medical equipment provider reported earnings that fell short of analyst expectations, continuing a trend of missed estimates in recent quarters.
For the quarter ended September 30, AdaptHealth reported earnings of $0.16 per diluted share, up slightly from $0.15 a year earlier but significantly below the FactSet analyst consensus of $0.23 per share. This marks the third consecutive quarter where the company has missed earnings estimates, potentially raising concerns about its profitability and operational efficiency.
Despite the earnings miss, AdaptHealth's revenue performance was more positive. The company reported net revenue of $820.3 million for the quarter, surpassing both the previous year's figure of $805.9 million and analyst expectations of $799.3 million. Additionally, AdaptHealth maintained its fiscal 2025 net revenue outlook of $3.18 billion to $3.26 billion, suggesting confidence in its top-line growth prospects. However, the market's sharp negative reaction indicates that investors are focusing more on the company's bottom-line performance and its ability to meet profit expectations.