Acadia Healthcare looks to add services on COVID-19’s ‘mental and emotional toll’

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Shares of Acadia Healthcare Co. Inc. fell nearly 6% in the extended session Tuesday after the company reported second-quarter revenue below Wall Street expectations and said it was expanding its offerings thanks to the mental-health toll it expects the pandemic will exact. Acadia said it earned $41.1 million, or 46 cents a share, in the quarter, compared with earnings of $48.1 million, or 55 cents a share, for the same period in 2019. Adjusted for one-time items, the company earned 54 cents a share. Revenue fell to $750.3 million from $789.4 million a year ago. Analysts polled by FactSet expected adjusted earnings of 39 cents a share on revenue of $763 million. A decrease in per-day revenue is “primarily attributable to a decline in outpatient volumes and reimbursement in certain markets for CTC in-person services that was temporarily affected by stay-at-home orders,” Acadia said. Volumes improved toward the end of the quarter as more localities eased restrictions, the company said. “We believe the ongoing mental and emotional toll caused by continuing economic and societal concerns will further increase the already strong demand for mental health and substance use treatments we provide in the U.S. and U.K.,” Acadia said in a statement. “We continue to make the necessary investments to serve our patients’ needs through bed expansion opportunities and additional service offerings.” Acadia ended the regular trading session up 0.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.