Acadia Healthcare Company (ACHC) experienced a significant stock plunge on October 31, 2024, with its shares tumbling by a staggering 15.82% during the trading session. This sharp decline was primarily driven by the company's third-quarter 2024 financial results and lowered guidance for the full year, which raised concerns among investors about Acadia's growth prospects and execution capabilities.
In its Q3 2024 earnings release on October 30, Acadia reported adjusted earnings per share of $0.91, beating analysts' estimates of $0.90. However, the company's quarterly revenue of $815.63 million fell short of the expected $819.43 million, representing a 0.46% miss. This revenue shortfall was a primary factor contributing to the stock's plunge, as it raised doubts about Acadia's ability to execute its business strategies effectively and capitalize on growth opportunities.
Furthermore, Acadia lowered its full-year 2024 guidance, exacerbating investor concerns. The company now expects revenue in the range of $3.15 billion to $3.17 billion, down from its previous forecast of $3.18 billion to $3.225 billion. Additionally, Acadia revised its adjusted earnings per share guidance for 2024 to a range of $3.35 to $3.45, lower than the previous estimate of $3.45 to $3.65 and missing the consensus expectation of $3.52. These guidance revisions raised questions about Acadia's growth trajectory and ability to meet investor expectations, leading to the sharp sell-off in the company's stock.
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