Overview

* Acadia Healthcare ( ACHC ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $851.57 $849.20

Revenue Beat* mln mln (11

Analysts

)

Q3 Net $38.32

Income mln

Q3 Miss $173 mln $178.60

Adjusted mln (11

EBITDA Analysts

)

*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 ( ACHC ) 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:

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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.)