Acadia Healthcare Company Inc. (NASDAQ: ACHC) announced its third quarter earnings for fiscal year 2017 and missed estimates, sending shares down over 25 percent during Wednesday’s trading hours.
The health service company reported revenue of $716.7 million, a 2.4 percent decrease year over year, and missing analysts’ estimates of $11.2 million. The company reported an EPS of $0.58, remaining flat year over year, but falling short of analysts’ estimates of $0.65.
Acadia says the earnings were impacted by the divestiture of 22 facilities in the U.K. that occurred on November 2016, which resulted from decrease in the exchange rate and discontinued operations. The divestitures resulted in higher operating costs than the company had expected.
The company had said that the negative impacts from the Hurricanes that impacted Florida, Georgia, and Puerto Rico lowered the third quarter’s earnings by $0.02.
Acadia updated its full year outlook now. The company expects revenue to be in the range of $2.82 billion to $2.83 billion. The company expects an EPS of $2.23 to $2.25.
After the poor quarter for the healthcare company, analysts’ have begun to lower their ratings.
Deutsche lowers it rating to Hold from Buy after the less than expected earnings report and Jefferies lowered its price target to $42 from $60. Baird says visibility on Acadia's U.K. business is limited as it downgrades to Neutral from Buy, according to Seeking Alpha.