Here's What to Expect From Acadia Healthcare's (ACHC) Q2 Earnings
Acadia Healthcare Company, Inc. ACHC is slated to report second-quarter 2023 results on Jul 27, after market close.
Q2 Estimates
The Zacks Consensus Estimate for Acadia Healthcare’s second-quarter earnings per share is pegged at 83 cents, which indicates a decline of 1.2% from the prior-year quarter’s reported figure.
The consensus mark for revenues stands at $707 million, suggesting 8.4% growth from the year-ago quarter’s reported number.
Earnings Surprise History
Acadia Healthcare's bottom line beat estimates in two of the trailing four quarters, matched the mark once and missed the same on the remaining one occasion, the average surprise being 2.33%. This is depicted in the chart below:
Acadia Healthcare Company, Inc. Price and EPS Surprise
Acadia Healthcare Company, Inc. price-eps-surprise | Acadia Healthcare Company, Inc. Quote
Factors to Note
In the second quarter, the top line of Acadia Healthcare is likely to have benefited on the back of growing patient admissions at its healthcare facilities spread across the United States. Expansion initiatives in the form of bed additions to existing facilities are also likely to have boosted ACHC’s revenue growth in the to-be-reported quarter. We estimate U.S. same-facility admissions to grow 4.9% year over year.
The growing incidence of mental health issues among Americans is expected to have sustained the solid demand of behavioral health care services provided by Acadia Healthcare. This, in turn, is likely to have provided an impetus to its quarterly results.
Higher patient days are expected to have boosted the growth prospects of its U.S. operations in the second quarter. We expect U.S. same-facility patient days to witness 1.6% year-over-year growth in the to-be-reported quarter.
Beneficial rate increases in its service lines, markets and payers are likely to have benefited revenue per day growth. Our estimate for revenue per patient day on a same-facility basis suggest 4.7% improvement on a year-over-year basis.
However, the margins of Acadia Healthcare are likely to have suffered a blow due to elevated salaries, wages and benefits resulting from prevailing challenges amid the labor market. Increased professional fees and supplies expense are also expected to have exerted strain on its bottom line.
We expect salaries, wages and benefits to escalate 10.5% year over year. Our estimate for professional fees and supplies expenses suggests 7.6% and 12% year-over-year increases, respectively.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Acadia Healthcare 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. However, that’s not the case here, as you see below.
Earnings ESP: Acadia Healthcare has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: ACHC currently carries a Zacks Rank of 3.
Stocks to Consider
While an earnings beat looks uncertain for Acadia Healthcare, here are some companies from the Medical space, which according to our model, have the right combination of elements to beat on earnings this time around:
Humana Inc. HUM has an Earnings ESP of +0.76% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HUM’s second-quarter 2023 earnings is pegged at $8.88 per share, indicating a rise of 2.4% from the prior-year quarter’s reported figure.
Humana’s earnings beat estimates in each of the trailing four quarters, the average surprise being 8.87%.
Novo Nordisk A/S NVO has an Earnings ESP of +4.63% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for NVO’s second-quarter 2023 earnings is pegged at $1.33 per share, indicating an 58.3% increase from the prior-year quarter’s reported figure.
Novo Nordisk’s earnings beat estimates in two of the trailing four quarters, matched the mark once and missed the same in the remaining one occasion, the average surprise being 0.35%.
AstraZeneca PLC AZN has an Earnings ESP of +1.88% and a Zacks Rank of 3, currently. The Zacks Consensus Estimate for AZN’s second-quarter 2023 earnings is pegged at 98 cents per share, suggesting 14% growth from the year-ago quarter’s reported figure.
AstraZeneca’s bottom line beat estimates in each of the trailing four quarters, the average surprise being 8.11%.
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AstraZeneca PLC (AZN) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Humana Inc. (HUM) : Free Stock Analysis Report
Acadia Healthcare Company, Inc. (ACHC) : Free Stock Analysis Report
