Acadia Healthcare Company Inc. (NASDAQ:ACHC) reported its financial results for the fourth quarter of 2024, revealing a notable miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.64, falling short of the expected $0.72. Revenue reached $774.2 million, missing the forecasted $780.22 million. Following these results, the company’s stock plunged 23.37% in after-hours trading, closing at $30.85, which is near its 52-week low. This latest decline adds to a challenging period for the stock, which has fallen over 50% in the past six months according to InvestingPro data, suggesting significant undervaluation based on comprehensive Fair Value analysis.
Key Takeaways
- EPS and revenue both missed forecasts, leading to a significant stock decline.
- Q4 revenue grew 4.2% year-over-year, but EBITDA margins decreased.
- The company is facing operational challenges with underperforming facilities.
- Expansion efforts continue with new hospital openings and bed additions.
- Market sentiment is negative, driven by earnings miss and increased liability reserves.
Company Performance
Acadia Healthcare’s performance in Q4 2024 showed revenue growth of 4.2% compared to the previous year, totaling $774 million. Despite this growth, the company’s adjusted EBITDA margin declined to 19.8%, down from 22.8% in the prior year, indicating increased operational costs or inefficiencies. The company continues to lead in technology adoption within the behavioral healthcare sector, but challenges remain in stabilizing underperforming facilities. InvestingPro analysis reveals the company maintains a GOOD financial health score of 2.91, with particularly strong marks in profitability (3.74) and relative value (3.19). Discover 12+ additional exclusive financial health metrics and insights with an InvestingPro subscription.
Financial Highlights
- Revenue: $774 million, up 4.2% year-over-year
- Full Year 2024 Revenue: $3.1 billion, up 7.7%
- Adjusted EBITDA: $153.1 million
- Adjusted EBITDA Margin: 19.8%, down from 22.8% in the previous year
- Same-facility patient days increased by 3.2%
Earnings vs. Forecast
Acadia Healthcare reported an EPS of $0.64, missing the forecast of $0.72 by $0.08, or approximately 11.1%. Revenue came in at $774.2 million, below the expected $780.22 million, marking a shortfall of $6.02 million. This performance marks a deviation from the company’s historical trend of meeting or exceeding expectations and suggests potential internal or market challenges.
For 2025, Acadia Healthcare projects revenue between $3.3 billion and $3.4 billion, with adjusted EBITDA expected to range from $675 million to $725 million. The company anticipates an adjusted EPS of $2.50 to $2.80. Despite current challenges, Acadia plans to add 800 to 1,000 new beds in 2025 and expects an EBITDA inflection point in 2026. InvestingPro data indicates net income is expected to grow this year, supported by the company’s strong historical revenue CAGR of 9% over the past five years.
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