Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Hospital Stock Q3 Earnings Slated For Nov 1: ACHC & ADPT

Published 10/30/2016, 09:38 PM
Updated 07/09/2023, 06:31 AM

The Q3 earnings season, which is presently in full swing, is projected to be the first quarter to see positive earnings growth after five quarters of decline.

Medical is one of the major broader sectors among the 16 Zacks sectors in the S&P 500 cohort that is expected to report earnings growth in the third quarter. The sector is likely to report earnings growth of 6% on revenue improvement of 7.3%.

As per the latest Earnings Preview, 291 S&P 500 members have posted their quarterly numbers as of Oct 28. Notably, reported earnings increased 2.2% year over year on a 1.3% surge in revenues and the beat ratio is 73.5% for earnings and 57.4% for revenues.

Hospital is an important component in the Medical universe and is expected follow the same earnings growth trajectory in the quarter. Here, we take a quick look at two hospital stocks scheduled to report their third-quarter figures on Nov 1:

Headquartered in Franklin, TN, Acadia Healthcare Company Inc. (NASDAQ:ACHC) provides behavioral health care services in the U.S. and the U.K. In the last reported quarter, the company posted adjusted earnings of 73 cents per share, which beat the Zacks Consensus Estimate by a penny.

ACADIA HEALTHCR Price and EPS Surprise

ACADIA HEALTHCR Price and EPS Surprise | ACADIA HEALTHCR Quote

Of the major developments, the strategic tie-up with Ochsner Health System in the quarter for the establishment of an 82-bed acute psychiatric hospital in the greater New Orleans metropolitan area should expand the company’s networks to a great extent. The company has also been chosen as a provider of behavioral health and addiction treatment services to the FBI National Academy Associates, one of the world’s strongest law enforcement networks.

However, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

That is because, as per our model, a stock needs to have both a positive earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Based in Lewisville, TX, Adeptus Health, Inc. (NYSE:ADPT) owns and operates First Choice Emergency Room, the network of independent freestanding emergency rooms in the U.S. In the last reported quarter, the company posted adjusted earnings of 43 cents per share, beating the Zacks Consensus Estimate by 5 cents.

We are upbeat about Adeptus’ solid system-wide net patient services platform. In fact, the joint venture with Texas Health Resources, one of the country's largest nonprofit health systems, earlier this year is expected to prove accretive in the quarter.

ADEPTUS HEALTH Price and EPS Surprise

ADEPTUS HEALTH Price and EPS Surprise | ADEPTUS HEALTH Quote

Nevertheless, our proven model does not conclusively show that the company is likely to beat earnings, given the combination of a Zacks Rank #5 and earnings ESP of 0.00%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Looking for Ideas with Even Greater Upside?

Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>



ADEPTUS HEALTH (ADPT): Free Stock Analysis Report

ACADIA HEALTHCR (ACHC): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.