ARDT Stock Forecast & Price Target

Ardent Health Incorporated reported a significant increase in EBITDA, reaching $143 million, which represents a 46% year-over-year growth and an improvement in margin to 9.1%, showcasing strong operational efficiency. The company experienced a 2.9% growth in admissions, aligning with its projected full-year outlook, and notably outperformed peers with inpatient admissions growing by 5.8% compared to the peer average of 1.7%. Additionally, improvements in contract labor costs and a management outlook indicating benefits from upcoming initiatives further bolster a positive long-term financial perspective for Ardent Health.

Ardent Health Inc's EBITDA for the third quarter was $143 million, reflecting a 46% year-over-year increase but falling 2% short of estimates due to a pull-forward effect from prior periods. The company's revenue adjustment of $43 million as it transitioned to a new revenue cycle management platform has led to lowered projections, with 2025 and 2026 EBITDA-NCI estimates reduced significantly to $542 million and $536 million respectively. Rising claims denials and unexpected professional fee headwinds are anticipated to negatively impact core EBITDA generation, leading to a more conservative outlook for growth in the near term.