AdaptHealth Shares Fall As Q2 Profits Come Below Expectation, Reaffirms Annual Guidance

  • AdaptHealth Corp AHCO delivered Q2 revenue of $727.6 million, +17.9% Y/Y, beating the consensus of $724.22 million.
  • Adjusted EBITDA reached $150 million, +1.8% Y/Y.
  • The company said that Q2 revenue and Adjusted EBITDA are consistent with internal expectations as it continues to overcome challenges resulting from industry shortages of CPAP equipment.
  • On a sequential basis, the adjusted EBITDA margin increased 110 basis points to 20.6%, as the company continues to manage through the inflationary environment and supply chain challenges.
  • The company reported EPS of $0.09, down from $0.12 a year ago and the consensus of $0.26.
  • Cash flow from operations was $103.5 million.
  • AdaptHealth says sleep categories showed strong sequential growth as the supply of PAP machines continues to improve relative to recent quarters.
  • Guidance: AdaptHealth reaffirms FY22 sales of $2.84 - $3.04 billion versus the consensus of $2.96 billion.
  • It forecasts adjusted EBITDA of $615-$675 million.
  • Price Action: AHCO shares are down 14.50% at $22 during the market session on the last check Tuesday.

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