Yahoo Finance Acadia Healthcare Company, Inc. (NASDAQ:ACHC) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
It's been a mediocre week for Acadia Healthcare Company, Inc. (NASDAQ:ACHC) shareholders, with the stock dropping 10% to US$66.12 in the week since its latest quarterly results. Acadia Healthcare Company reported in line with analyst predictions, delivering revenues of US$768m and statutory earnings per share of US$0.83, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Acadia Healthcare Company
Following the latest results, Acadia Healthcare Company's ten analysts are now forecasting revenues of US$3.21b in 2024. This would be an okay 7.4% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Acadia Healthcare Company forecast to report a statutory profit of US$3.54 per share. In the lead-up to this report, the analysts had been modelling revenues of US$3.22b and earnings per share (EPS) of US$3.54 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$91.75, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Acadia Healthcare Company at US$105 per share, while the most bearish prices it at US$70.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Acadia Healthcare Company's growth to accelerate, with the forecast 10.0% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Acadia Healthcare Company to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$91.75, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Acadia Healthcare Company analysts - going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Acadia Healthcare Company (1 is significant!) that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
