Texas Roadhouse earnings missed by $0.05, revenue topped estimates
Investing.com - Truist Securities has reiterated its Buy rating and $13.00 price target on AdaptHealth (NASDAQ:AHCO) following the company’s announcement of its completed infusion assets divestiture. With a market capitalization of $1.22 billion and trading at an EV/EBITDA multiple of 5.15x, InvestingPro analysis suggests the stock is currently undervalued.
AdaptHealth closed the previously announced sale of certain infusion assets from its Wellness at Home segment earlier in June. The company used proceeds from this transaction along with other funds to make a $65 million prepayment on its term loan, continuing its debt reduction efforts after a previous $70 million prepayment on May 2 following the sale of incontinence assets. InvestingPro data shows the company maintains a healthy current ratio of 1.29x, with additional insights available in the comprehensive Pro Research Report.
The healthcare equipment provider has updated its 2025 financial guidance to reflect the divestiture, now projecting revenue of $3.15 billion to $3.29 billion (down from $3.18-$3.32 billion) and adjusted EBITDA of $662-$702 million (reduced from $665-$705 million). The divested assets generated approximately $52 million in annual revenue and $5 million in annual adjusted EBITDA. According to InvestingPro, the company maintains a strong financial health score of GREAT (3.24), with 8 additional exclusive ProTips available for subscribers.
AdaptHealth also revised its free cash flow guidance to $170-$190 million, down from the previous $180-$220 million, primarily due to approximately $30 million in cash taxes related to divestiture gains. Despite this reduction, the adjusted guidance suggests modestly improved core free cash flow generation.
The company continues to make progress toward its leverage target of 2.5x, with its leverage ratio standing at 2.98x as of the first quarter of 2025, demonstrating improved financial flexibility through its ongoing portfolio rationalization efforts.
In other recent news, AdaptHealth Corp reported its Q1 2025 earnings, revealing a mixed financial performance. The company missed earnings per share (EPS) expectations with a reported EPS of -$0.05, falling short of the $0.10 forecast. However, revenue slightly exceeded expectations, reaching $777.9 million compared to the anticipated $774.88 million. Despite the earnings miss, the company continues to focus on operational improvements and debt reduction. AdaptHealth has reduced its debt by $25 million in Q1, totaling $195 million over the last five quarters. Additionally, Truist Securities maintained its buy rating on AdaptHealth, citing the company’s strong market positioning and potential for mergers and acquisitions. The firm’s positive outlook also highlighted AdaptHealth’s contract with Humana (NYSE:HUM) and potential opportunities in artificial intelligence and automation. AdaptHealth provided a full-year 2025 revenue guidance of $3.18 billion to $3.32 billion, with expectations for Q2 2025 revenue to remain flat year-over-year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.