Overview

* AdaptHealth ( AHCO ) Q2 revenue declines 0.7%, missing analyst expectations, per LSEG data

* Adjusted EBITDA falls 5.9% yr/yr, reflecting operational challenges

* Operating income and pretax profit beat analyst estimates, per LSEG data

* Signs 5-year deal to be exclusive provider of home medical equipment and supplies for a major national healthcare system's network

Outlook

* Company updates fiscal 2025 net revenue guidance to $3.18 bln-$3.26 bln, from from $3.15 bln to $3.29 bln

* AdaptHealth ( AHCO ) revises 2025 adjusted EBITDA forecast to $642 mln-$682 mln, from from $662 mln to $702 mln

* Company maintains fiscal year free cash flow guidance at $170 mln-$190 mln

Result Drivers

* ASSET SALES - Closed sales of certain incontinence and infusion assets in Wellness at Home segment

* DEBT REDUCTION - Rapid progress in reducing debt and fortifying financial position, per CEO Suzanne Foster

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $800.37 $803.80

Revenue mln mln (8

Analysts

)

Q2 EPS $0.1

Q2 Net $15.83

Income mln

Q2 Beat $79.25 $53.40

Operatin mln mln (7

g Income Analysts

)

Q2 Beat $51.72 $26.80

Pretax mln mln (6

Profit Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

* Wall Street's median 12-month price target for Adapthealth Corp ( AHCO ) is $13.00, about 29.9% above its August 4 closing price of $9.11

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(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.)