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

AdaptHealth (NASDAQ:AHCO) released its quarterly earnings data on Tuesday. The company reported ($1.13) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($1.08), FiscalAI reports. AdaptHealth had a negative return on equity of 0.27% and a negative net margin of 12.90%. The business had revenue of $745.65 million for the quarter, compared to analyst estimates of $725.87 million. During the same quarter last year, the company earned $0.16 EPS. AdaptHealth’s 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 Price Performance

Shares of AdaptHealth stock opened at $7.65 on Thursday. The firm has a market cap of $1.04 billion, a PE ratio of -2.53 and a beta of 1.36. The company’s fifty day simple moving average is $5.94 and its two-hundred day simple moving average is $9.10. AdaptHealth has a 12-month low of $5.21 and a 12-month high of $13.43. The company has a quick ratio of 0.98, a current ratio of 1.13 and a debt-to-equity ratio of 1.53.

Analysts Set New Price Targets

A number of research firms recently commented on AHCO. Weiss Ratings restated a “sell (d)” rating on shares of AdaptHealth in a research report on Wednesday, August 19th. Robert W. Baird cut their price objective on AdaptHealth from $10.00 to $9.00 and set an “outperform” rating for the company in a research report on Thursday, September 17th. Wall Street Zen lowered shares of AdaptHealth from a “hold” rating to a “sell” rating in a research report on Sunday, August 16th. UBS Group reduced their price target on shares of AdaptHealth from $10.00 to $9.00 and set a “buy” rating on the stock in a research report on Wednesday. Finally, Royal Bank Of Canada decreased their target price on shares of AdaptHealth from $15.00 to $8.00 and set an “outperform” rating on the stock in a research note on Thursday, August 6th. Seven research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $10.00.

About AdaptHealth

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.