Why Is AdaptHealth (AHCO) Stock Down 22% Today?


  • AdaptHealth (AHCO) stock is down after releasing its fourth-quarter earnings report.
  • The company missed earnings per share and revenue estimates for the quarter.
  • AdaptHealth also lowered its revenue outlook for full-year 2023.
AHCO Stock. Medicine and healthcare concept - team or group of doctors and nurses

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AdaptHealth (NASDAQ:AHCO) stock is falling on Tuesday following the release of the company’s earnings report for the fourth quarter of 2022.

The bad news for AHCO stock starts with the company’s earnings per share of -2 cents. That’s well below the 28 cents per share Wall Street was expecting during the quarter. It’s also a negative switch compared to the company’s EPS of 15 cents from the same time last year.

Adding to that, revenue came in at $780.28 million for the period. Yet again, that’s below the $788.13 million in revenue that analysts were expecting, even if it is an 11.1% increase year-over-year (YOY) from $702.1 million.

Steve Griggs, CEO of AdaptHealth, said the following in the company’s latest earnings report:

“We are disappointed that Adjusted EBITDA fell short of our full-year guidance due primarily to larger impacts from revenue mix and cost pressures than we previously expected. However, we are excited about the immediate future and our long-term opportunities, and are confident that management will execute on new cost containment programs to ensure we deliver on our updated guidance.”

Guidance Isn’t Helping AHCO Stock

As part of the report, the company also updated its revenue guidance for full-year 2023 to between $3.16 billion and $3.24 billion. That’s down from the company’s prior revenue guidance range of $3.21 billion to $3.29 billion. It also doesn’t look good next to Wall Street’s revenue estimate of $3.25 billion for 2023.

AHCO stock is down 22.3% in pre-market trading on Tuesday!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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