Acadia Healthcare Company (ACHC) witnessed a substantial 18.39% plunge in its stock price on October 31, 2024, following the release of its third-quarter 2024 financial results and lowered guidance for the full year. The sharp decline was driven by a combination of factors that raised significant concerns among investors about the company's growth prospects and execution capabilities.

In its Q3 2024 earnings report, Acadia beat analysts' earnings estimates, reporting adjusted earnings per share of $0.91 versus the consensus estimate of $0.90. However, the company's quarterly revenue of $815.63 million fell short of the expected $819.43 million, representing a 0.46% miss. This revenue shortfall was a primary factor contributing to the stock's plunge, as it raised doubts about Acadia's ability to execute its business strategies effectively and capitalize on growth opportunities.

Furthermore, Acadia lowered its full-year 2024 guidance, exacerbating investor concerns. The company now expects revenue in the range of $3.15 billion to $3.17 billion, down from its previous forecast of $3.18 billion to $3.225 billion. Additionally, Acadia revised its adjusted earnings per share guidance for 2024 to a range of $3.35 to $3.45, lower than the previous estimate of $3.45 to $3.65 and missing the consensus expectation of $3.52. These guidance revisions raised questions about Acadia's growth trajectory and ability to meet investor expectations, leading to the sharp sell-off in the company's stock.