AdaptHealth (NASDAQ:AHCO) Releases Quarterly Earnings Results, Misses Expectations By $1.08 EPS

AdaptHealth (NASDAQ:AHCO) released its quarterly earnings data on Tuesday. The company reported ($1.13) EPS for the quarter, missing the consensus estimate of ($0.05) by ($1.08), FiscalAI reports. AdaptHealth had a positive return on equity of 3.36% and a negative net margin of 7.07%. The business had revenue of $745.65 million during the quarter, compared to the consensus estimate of $725.87 million. During the same quarter in the previous year, the business posted $0.16 earnings per share. AdaptHealth’s quarterly revenue was down 9.1% compared to the same quarter last year.

Here are the key takeaways from AdaptHealth’s conference call:

• Third-quarter results exceeded guidance: Revenue rose 10.9% year over year to $745.6 million, organic growth was 12.8%, and adjusted EBITDA was $141.9 million, helped by strong Sleep Health and resupply performance.
• The largest capitated contract improved materially, moving from a negative 4% margin in the second quarter to approximately 10% in the third quarter and a roughly 14% exit run rate. Management expects the contract to reach a 20% margin by the fourth quarter of 2027, excluding any potential pricing adjustment.
• AdaptHealth raised full-year revenue guidance to $2.88 billion-$2.90 billion and adjusted EBITDA guidance to $510 million-$525 million. The company also secured four preferred-provider agreements with large health systems and added two capitated contracts covering approximately 72,000 lives.
• Full-year free cash flow guidance was lowered to $55 million-$80 million, although management attributed the change primarily to pulling forward vendor payments to capture discounts. Net leverage remained approximately 3.05 times, above the company’s 2.5-times target.
• The Diabetes Health sale to Cardinal Health is expected to close in early 2027, with proceeds expected to be directed significantly toward debt reduction. The company is also managing Medline’s bed field action; it expects reimbursement from Medline, but repair and replacement work will continue over multiple quarters and could create short-term costs.

AdaptHealth Stock Performance

AHCO stock traded up $0.18 during midday trading on Tuesday, reaching $6.09. 2,137,416 shares of the company’s stock traded hands, compared to its average volume of 1,896,224. The company has a current ratio of 1.12, a quick ratio of 0.98 and a debt-to-equity ratio of 1.37. AdaptHealth has a 52-week low of $5.21 and a 52-week high of $13.43. The stock has a market cap of $830.17 million, a P/E ratio of -3.54 and a beta of 1.42. The stock’s 50-day moving average is $5.89 and its 200 day moving average is $9.14.

Insider Buying and Selling at AdaptHealth

In other AdaptHealth news, Director Kenneth Samet acquired 23,500 shares of the business’s stock in a transaction dated Thursday, August 6th. The stock was purchased at an average price of $6.38 per share, with a total value of $149,930.00. Following the transaction, the director directly owned 48,569 shares in the company, valued at approximately $309,870.22. The trade was a 93.74% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 1.95% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Canaccord Genuity Group set a $10.00 price objective on shares of AdaptHealth in a report on Wednesday, August 5th. Robert W. Baird cut their target price on shares of AdaptHealth from $10.00 to $9.00 and set an “outperform” rating for the company in a research report on Thursday, September 17th. Truist Financial decreased their target price on shares of AdaptHealth from $14.00 to $9.00 and set a “buy” rating for the company in a research note on Wednesday, August 5th. Wall Street Zen cut AdaptHealth from a “hold” rating to a “sell” rating in a report on Sunday, August 16th. Finally, UBS Group dropped their price target on AdaptHealth from $14.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Seven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $10.14.

AdaptHealth Company Profile

AdaptHealth Corp. (NASDAQ: AHCO) is a provider of home medical equipment, supplies and related healthcare services in the United States. The company helps patients manage chronic conditions and recover from illness or injury outside of traditional healthcare facilities, working with individuals, caregivers, physicians and payers.

Its products and services include respiratory equipment and supplies, oxygen therapy, sleep therapy devices such as continuous positive airway pressure systems, diabetes management products, mobility and accessibility equipment, and other durable medical equipment.