ATI Physical Therapy, Inc. (ATIP) Reports Q3 Loss, Tops Revenue Estimates

Company Performance - ATI Physical Therapy reported a quarterly loss of $4.89 per share, which was worse than the Zacks Consensus Estimate of a loss of $3.12, and compared to a loss of $4.42 per share a year ago, indicating a significant earnings surprise of -56.73% [1] - The company posted revenues of $189.99 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.05%, and showing an increase from year-ago revenues of $177.46 million [2] - Over the last four quarters, ATI Physical Therapy has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Outlook - The stock has underperformed, losing about 10.4% since the beginning of the year, while the S&P 500 gained 20.1% [3] - The current consensus EPS estimate for the coming quarter is -$2.26 on revenues of $194.74 million, and for the current fiscal year, it is -$9.70 on revenues of $748.68 million [7] - The estimate revisions trend for ATI Physical Therapy is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which ATI Physical Therapy belongs, is currently in the top 12% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]