Ardent Health Q2 hit by lower surgeries and admissions; cuts forecast
Ardent Health Q2 hit by lower surgeries and admissions; cuts forecast
Overview
U.S. healthcare provider's Q2 revenue declined 1.4% yr/yr but beat analyst expectations
Adjusted EBITDA for Q2 decreased yr/yr but beat analyst estimates
Company repurchased 1.4 mln shares for $13 mln during Q2
Outlook
Company reaffirms 2026 revenue guidance of $6.4 bln to $6.7 bln
Ardent Health maintains 2026 adjusted EBITDA forecast of $485 mln to $535 mln
Company lowers 2026 net income and EPS guidance amid lower volume outlook
Result Drivers
PAYMENT PROGRAM IMPACT - Co said revenue decline was mainly due to prior year recording two quarters of New Mexico state directed payment program benefit
LOWER SURGERY AND ADMISSION VOLUMES - Co said lower surgeries and admissions negatively impacted Q2 operating and financial performance
COST SAVINGS INITIATIVES - Co said incremental benefit from IMPACT program expected to generate at least $70 mln savings in 2026, up from $55 mln previously
Company press release: ID:nBw4F9FqGa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.62 bln | $1.59 bln (10 Analysts) |
Q2 EPS |
| $0.12 |
|
Q2 Net Income |
| $34.69 mln |
|
Q2 Adjusted EBITDA | Beat | $115 mln | $110.24 mln (11 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for Ardent Health Inc is $12.00, about 11.6% above its August 3 closing price of $10.75
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Aug 4 - Pediatrix Medical beats Q2 revenue estimates, reaffirms 2026 adjusted EBITDA outlook
Aug 3 - Addus HomeCare Q2 adjusted profit beats estimates
Aug 4 - AdaptHealth Q2 revenue misses estimates
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Recent news on Ardent Health
See all newsBrief: Ardent Health Inc Recharacterized Martin Bonick's Separation As Of Separation Date As A Termination For "Cause." - SEC Filing
Ardent Health Inc reports results for the quarter ended June 30 - Earnings Summary
Ardent Health Q2 hit by lower surgeries and admissions; cuts forecast
Ardent Health Inc expected to post earnings of 18 cents a share - Earnings Preview
Brief: Ardent Health Appoints Dave Caspers As CEO