Earnings To Watch: Acadia Healthcare (ACHC) Reports Q4 Results Tomorrow

Behavioral health company Acadia Healthcare (NASDAQ:ACHC) will be reporting results tomorrow after market close. Here’s what investors should know.

Acadia Healthcare met analysts’ revenue expectations last quarter, reporting revenues of $815.6 million, up 8.7% year on year. It was a softer quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates and a slight miss of analysts’ sales volume estimates.

Is Acadia Healthcare a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Acadia Healthcare’s revenue to grow 4.9% year on year to $778.9 million, slowing from the 10% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Acadia Healthcare has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Acadia Healthcare’s peers in the healthcare providers & services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. HCA Healthcare delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 0.7%, and Tenet Healthcare reported a revenue decline of 5.7%, falling short of estimates by 2%. HCA Healthcare traded up 2.1% following the results while Tenet Healthcare was down 3.8%.

Read our full analysis of HCA Healthcare’s results here and Tenet Healthcare’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the healthcare providers & services stocks have shown solid performance, the group has generally underperformed, with share prices down 4.4% on average over the last month. Acadia Healthcare is down 1.9% during the same time and is heading into earnings with an average analyst price target of $61.38 (compared to the current share price of $42.70).

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