Will Rising Expenses Hurt Acadia Healthcare's Q1 Earnings?

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Acadia Healthcare Company, Inc. ACHC is set to report first-quarter 2025 results on May 12, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at 42 cents per share on revenues of $770.5 million.

First-quarter earnings estimates declined 8 cents per share in the past 60 days. The bottom-line estimate indicates a year-over-year decrease of 50%. However, the Zacks Consensus Estimate for the Behavioral healthcare service provider's quarterly revenues implies year-over-year growth of 0.3%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

 

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Zacks Investment Research

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For 2025, the Zacks Consensus Estimate for Acadia Healthcare’s revenues is pegged at $3.33 billion, implying a year-over-year rise of 5.7%. But the consensus mark for current-year EPS is pegged at $2.76, implying a fall of 16.4% on a year-over-year basis.

Acadia Healthcare beat the consensus estimate for earnings in three of the last four quarters and missed once, the average surprise being negative 0.4%. This is depicted in the figure below.

Acadia Healthcare Company, Inc. Price and EPS Surprise

 

Acadia Healthcare Company, Inc. Price and EPS Surprise
Acadia Healthcare Company, Inc. Price and EPS Surprise

Acadia Healthcare Company, Inc. price-eps-surprise | Acadia Healthcare Company, Inc. Quote

Q1 Earnings Whispers for ACHC

Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.

ACHC has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

What is Shaping ACHC’s Q1 Results?

The Zacks Consensus Estimate and our model estimate for revenue per patient day imply a 2% year-over-year rise. Also, both the consensus estimate and our model estimate for Residential Treatment Centers’ revenues indicate a 9.7% jump from the year-ago level of $85.6 million.

Both estimates for U.S. same-facility admissions indicate a marginal increase from a year ago. Similarly, both the Zacks Consensus Estimate and our model estimate for Specialty Treatment Facilities’ revenues signal a 0.1% increase from the year-ago figure of $143.8 million.

While the above-mentioned factors are likely to have supported Acadia Healthcare’s first-quarter revenues, rising expenses are likely to have affected its profit levels, making an earnings beat uncertain. We expect total expenses to have increased more than 11% in the to-be-reported quarter due to higher salaries, wages and benefits, professional fees and other operating costs. Also, with rising utilization, supply costs are expected to have increased in the first quarter.