AdaptHealth Earnings: What To Look For From AHCO

Healthcare services provider AdaptHealth Corp. (NASDAQ:AHCO) will be announcing earnings results tomorrow before market open. Here’s what to look for.

AdaptHealth met analysts’ revenue expectations last quarter, reporting revenues of $805.9 million, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.

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

This quarter, analysts are expecting AdaptHealth’s revenue to decline 3.4% year on year to $828.9 million, a reversal from the 10% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 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. AdaptHealth has missed Wall Street’s revenue estimates four times over the last two years.

Looking at AdaptHealth’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. Brookdale delivered year-on-year revenue growth of 3.5%, meeting analysts’ expectations, and Pediatrix Medical Group reported revenues up 1.2%, topping estimates by 3.6%. Brookdale traded up 2.5% following the results while Pediatrix Medical Group was also up 10.4%.

Read our full analysis of Brookdale’s results here and Pediatrix Medical Group’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the healthcare providers & services stocks have shown solid performance, the group has generally underperformed, with share prices down 5.3% on average over the last month. AdaptHealth is down 25.1% during the same time and is heading into earnings with an average analyst price target of $11.28 (compared to the current share price of $8.26).

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