AdaptHealth (AHCO, Financial) saw a notable downturn in its stock price, falling approximately 9.56%, following the release of quarterly results that missed analyst expectations in several key areas, including revenue and profitability.
In its third-quarter earnings report, AdaptHealth announced a revenue of just under $806 million, slightly below the anticipated $809 million. Despite an improvement in net income to nearly $23 million, or $0.15 per share, this result did not meet the forecasted profit of $0.19 per share. The company also adjusted its full-year revenue guidance downward to a range of $3.22 billion to $3.26 billion, failing to reach the previous guidance of $3.26 billion to $3.32 billion and the analyst estimate of $3.28 billion.
The adjusted EBITDA guidance was similarly revised, now expected to be between $655 million and $675 million, a decrease from the earlier forecast of $660 million to $700 million. However, the company raised its free cash flow forecast for 2024 to $175 million-$195 million, up from $160 million-$180 million previously.
From a valuation perspective, AdaptHealth's stock, currently priced at $9.18, has several key financial metrics to consider. The company's GF Value is estimated at $16.89, indicating a potential undervaluation in the market (GF Value). However, caution is warranted as its financial indicators present a mixed picture. The company's Altman Z-Score is in the distress zone at 0.38, indicating potential financial risk.
AdaptHealth (AHCO, Financial) operates within the healthcare sector, specializing in home medical equipment and related services. Despite recent setbacks, its increased forecast for future free cash flow offers a glimmer of optimism for potential investors. Nevertheless, critical attention to financial health indicators and market conditions remains essential for those considering an investment in AHCO.
