Adeptus Health Inc. ADPT recently updated its full-year 2016 guidance. The company now expects net patient services revenues, which includes revenue from the company's unconsolidated joint ventures, in the range of $640 million to $670 million, up from the previous $635 million to $665 million.
Adjusted EBITDA is now forecasted in the range of $110 million to $115 million, better than the earlier guided range of $108 million to $113 million. The increase in revenues and EBITDA is expected to boost adjusted earnings, which is now expected in the range of $2.55–$2.65 per share, up from $2.50–$2.60 guided earlier.
Adeptus expects to open its hospital in Broomfield, CO, in the third quarter of 2016 and hospitals in Colorado Springs and New Orleans during the fourth quarter. The Houston hospital, which was expected to open in early 2017, is now anticipated to be ready by Dec 2016.
These back-to-back scheduled openings prompted management at Adeptus to raise full-year guidance. Adeptus also expects same-store volumes and revenues to improve year over year for the second quarter as well as for full-year 2016.
Adeptus projects net patient services revenues in the range of $140 million to $145 million for the second quarter of 2016. Adjusted EBITDA is forecasted in the band of $22 million to $24 million, while adjusted earnings are likely to be between 48 cents and 52 cents per share. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at 57 cents.
However, second-quarter results are expected to be impacted by operating losses from the First Texas Hospital, as well as incremental operating costs related to the launch of new hospitals.
Adeptus expects to report second-quarter 2016 results on or about Jul 20.
Zacks Rank & Other Key Picks
Adeptus carries a Zacks Rank #2 (Buy).
Other favorably ranked stocks in the same space are Air Methods AIRM, AMN Healthcare Services AHS and Baxter International Inc BAX. All the three stocks sport a Zacks Rank #1 (Strong Buy).
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