Acadia Healthcare Company Inc (NASDAQ:ACHC) stock took a nosedive today on abysmal earnings for the third quarter of 2017.
During the third quarter of the year, Acadia Healthcare Company Inc reported earnings per share of 58 cents. This matches the company’s earnings per share reported in the same period of the year prior. However, it was well below Wall Street’s earnings per share estimate of 66 cents and was damaging to ACHC stock today.
Acadia Healthcare Company Inc reported revenue of $716.71 million in the third quarter of 2017. This is down 2.4% from the $734.67 million in revenue that it reported in the third quarter of 2016. It also wasn’t good news for ACHC stock by failing to reach analysts’ revenue estimate of $734.79 million for the quarter.
Acadia Healthcare Company Inc attributes its poor earnings report for the third quarter of 2017 to a few different factors. The first are the recent hurricanes that the U.S. has suffered. It claims that these hurt its earnings per share for the quarter by 2 cents.
The larger effect on Acadia Healthcare Company Inc’s third-quarter earnings report comes from the U.K. The company says that lower seasonal census in the region was part of the reason for its weak earnings. It also notes that operating costs in the area were higher than what it was expecting for the quarter.
Acadia Healthcare Company Inc also updated its guidance for 2017 in its most recent earnings report and it’s below estimates. The company is expecting earnings per share to range from $2.23 to $2.25 on revenue between $2.82 billion and $2.83 billion. Wall Street is looking for ACHC to report earnings per share of $2.42 on revenue of $2.86 billion for the year.
ACHC stock was down 27% as of Wednesday afternoon and is down 3% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.