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

AdaptHealth (NASDAQ:AHCO) posted 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 net margin of 7.07% and a positive return on equity of 3.36%. The business had revenue of $745.65 million during the quarter, compared to the consensus estimate of $725.87 million. The firm’s revenue was down 9.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.16 earnings per share.

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 Trading Up 1.9%

AHCO traded up $0.11 during midday trading on Tuesday, reaching $6.02. 1,882,081 shares of the company were exchanged, compared to its average volume of 1,895,179. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.98 and a current ratio of 1.12. AdaptHealth has a one year low of $5.21 and a one year high of $13.43. The stock has a market capitalization of $821.31 million, a P/E ratio of -3.53 and a beta of 1.42. The stock’s 50-day simple moving average is $5.89 and its 200 day simple moving average is $9.14.

Insiders Place Their Bets

In other news, Director Kenneth Samet purchased 23,500 shares of AdaptHealth stock in a transaction dated Thursday, August 6th. The shares were bought at an average cost of $6.38 per share, with a total value of $149,930.00. Following the completion of the transaction, the director directly owned 48,569 shares in the company, valued at $309,870.22. This trade represents a 93.74% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 1.95% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on AHCO shares. UBS Group dropped their price objective on shares of AdaptHealth from $14.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Wall Street Zen cut shares of AdaptHealth from a “hold” rating to a “sell” rating in a research note on Sunday, August 16th. Weiss Ratings reissued a “sell (d)” rating on shares of AdaptHealth in a research report on Wednesday, August 19th. Royal Bank Of Canada dropped their price target on shares of AdaptHealth from $15.00 to $8.00 and set an “outperform” rating for the company in a research report on Thursday, August 6th. Finally, Canaccord Genuity Group set a $10.00 price target on shares of AdaptHealth in a research note on Wednesday, August 5th. Seven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $10.14.

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.