At-home healthcare services provider AdaptHealth misses Q2 revenue estimates, signs new supply contract
Overview
AdaptHealth Q2 revenue declines 0.7%, missing analyst expectations, per LSEG data
Adjusted EBITDA falls 5.9% yr/yr, reflecting operational challenges
Operating income and pretax profit beat analyst estimates, per LSEG data
Signs 5-year deal to be exclusive provider of home medical equipment and supplies for a major national healthcare system's network
Outlook
Company updates fiscal 2025 net revenue guidance to $3.18 bln-$3.26 bln, from from $3.15 bln to $3.29 bln
AdaptHealth revises 2025 adjusted EBITDA forecast to $642 mln-$682 mln, from from $662 mln to $702 mln
Company maintains fiscal year free cash flow guidance at $170 mln-$190 mln
Result Drivers
ASSET SALES - Closed sales of certain incontinence and infusion assets in Wellness at Home segment
DEBT REDUCTION - Rapid progress in reducing debt and fortifying financial position, per CEO Suzanne Foster
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $800.37 mln | $803.80 mln (8 Analysts) |
Q2 EPS |
| $0.1 |
|
Q2 Net Income |
| $15.83 mln |
|
Q2 Operating Income | Beat | $79.25 mln | $53.40 mln (7 Analysts) |
Q2 Pretax Profit | Beat | $51.72 mln | $26.80 mln (6 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for Adapthealth Corp is $13.00, about 29.9% above its August 4 closing price of $9.11
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nBwbKhgmVa
