Acadia Healthcare: Q3 Earnings Beat, Guidance Cut Sends Shares Tumbling

Acadia Healthcare Company, Inc. (NASDAQ: ACHC) reported strong third-quarter earnings, but a guidance cut sent its shares plunging. The company's revenue and adjusted EBITDA grew significantly, driven by strategic investments and effective management. However, the closure of two facilities led to a reduction in full-year guidance, sparking a negative market reaction.

Acadia Healthcare's Q3 2024 results showcased robust financial performance, with revenue reaching $815.6 million, an 8.7% increase year-over-year. Same facility revenue rose by 8.6%, with revenue per patient day climbing 3.6% and patient days increasing by 4.7%. The company's adjusted EBITDA grew by 10.5% to $194.3 million, excluding relief funds, and the same facility adjusted EBITDA margin improved by 100 basis points to 29.7%. Chris Hunter, CEO of Acadia, attributed the strong performance to the company's effective execution of its growth strategy, which includes expanding capacity and enhancing patient care across its facilities.


Despite the impressive Q3 earnings, Acadia Healthcare lowered its full-year guidance due to the closure of two facilities during the third quarter. The closures resulted in a loss of approximately $17 million in revenue and $1 million in EBITDA contribution for the second half of the year. Additionally, the company revised its guidance to reflect one-time state payments of approximately $10 million for the year, which had previously been included in its full-year outlook. The revised guidance now estimates revenue between $3.150 to $3.165 billion and adjusted EBITDA between $725 to $735 million.

The market reacted negatively to the revised guidance, with shares of Acadia Healthcare diving following the announcement. Investors focused on the reduced outlook for the remainder of the year, despite the strong Q3 earnings. This reaction reflects the market's sensitivity to guidance changes and the importance of consistent performance in maintaining investor confidence.


Acadia Healthcare is addressing the impact of the guidance reduction by focusing on strategic growth initiatives and maintaining a strong financial position. The company is expanding its facilities, adding 15 beds and five new Comprehensive Treatment Centers (CTCs) during Q3, now operating 164 CTCs across 32 states. This expansion aims to increase capacity and enhance patient care, supporting future growth. Additionally, Acadia maintains a solid cash position of $82.1 million and robust liquidity under its revolving credit facility, ensuring financial flexibility to navigate challenges and support long-term growth.

In conclusion, Acadia Healthcare's strong Q3 earnings were overshadowed by a guidance cut, sending shares tumbling. The company's strategic investments and effective management contributed to its robust financial performance, but the closure of two facilities led to a reduction in full-year guidance. Despite the negative market reaction, Acadia Healthcare remains focused on strategic growth initiatives and maintaining a strong financial position to support long-term growth.