Acadia Healthcare Shares Rise 3.6% on Q3 Earnings Beat

Shares of behavioral healthcare services provider Acadia Healthcare Co. (ACHC) gained 3.6% in Thursday’s extended trade after the company reported Q3 earnings of $0.73 per share, which surpassed the Street’s expectations of $0.71. ACHC had posted earnings of $0.42 per share in the same quarter last year.

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Quarterly revenue rose 7.2% year-over-year to $587.6 million but lagged analysts’ estimates of $591.2 million. (See Acadia Healthcare stock chart on TipRanks)

Same facility revenue increased 7.9% year-over-year, including revenue per patient day growth of 5.6% and an increase in patient days by 2.2%.

The CEO Debbie Osteen, Acadia Healthcare, said, “Our success to date in 2021 confirms the strength of our operating model and our ability to execute our strategy. Looking ahead, we will continue to expand our network and serve more patients through our four distinct pathways for growth – bed expansions, wholly owned de novo facilities, strategic joint ventures and acquisitions.”

The company expects 2021 revenue to be in the range of $2.295 billion to $2.315 billion. Also, adjusted earnings per share is likely to be between $2.51 and $2.59. Total capital expenditures are expected in a range of $210 million to $230 million, which include approximately $45 million for maintenance capital expenditures. (See Insiders’ Hot Stocks on TipRanks)

Last month, Credit Suisse analyst A.J. Rice upgraded the rating on Acadia Healthcare to Buy from Hold with a price target of $68. The price target implies 16.5% upside potential from current level.

Based on 8 Buys, 2 Holds and 1 Sell, the stock has a Moderate Buy consensus rating. The average Acadia Healthcare price target of $76.18 implies 30.5% upside potential from current levels.

According to TipRanks’ Smart Score system, Acadia Healthcare gets an 8 out of 10, which indicates that the stock is likely to outperform market averages.