Shares of Acadia Healthcare (NASDAQ:ACHC) are up 17.9% as of 1:14 p.m. EDT on Friday, after rising as much as 23.4% earlier today. Investors are bidding up shares of the behavioral healthcare services provider following the release of its third-quarter earnings report on Thursday evening.
Third-quarter revenue jumped by 7.2% year over year to $833.3 million. On average, analysts expected the company's top line to come in at $803.72 million. Meanwhile, Acadia's net income was $37 million, or $0.42 on a per-share basis, compared with $42.6 million in net income and EPS of $0.48 during the prior-year quarter.
While the bottom line decreased from the year-ago period, adjusted net income, which analysts tend to care about more, rose by 31.3% to $60.3 million. Its adjusted EPS was $0.68 for the quarter, versus $0.52 in the prior-year quarter; the consensus analyst estimate was $0.54. For the fourth quarter, Acadia expects revenue between $810 million and $835 million, and adjusted EPS between $0.68 and $0.72.
What was responsible for Acadia beating analyst estimates during the third quarter? According to the company, the coronavirus pandemic has increased the demand for its services. Acadia Healthcare expects this trend to continue, and as a result, its financial results will likely continue to beat expectations. Given these factors, it isn't surprising to see investors bidding up shares of the healthcare company today.