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Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $2.24 for third-quarter 2020, up 94.8% from the year-ago figure. The bottom line beat the Zacks Consensus Estimate by 76.4%.
Net service revenues grossed $485.1 million, up 9.9% year over year. The top line surpassed the Zacks Consensus Estimate by 2.1%.
Quarter in Detail
Within the Home Health division, net service revenues totaled $326 million in the quarter, reflecting 4.7% rise year over year. Within this, Medicare revenues of $222.2 million improved 5.1% year over year. Non-Medicare revenues increased 3.8% to $103.8 million.
Within the Hospice division, net service revenues were $199.7 million (up 22.9% year over year), including Medicare revenues of $189 million (up 23.5%) and non-Medicare revenues of $10.7 million (up 20.2%).
The company’s additional operating segments, post integration, are Personal Care and Corporate. At Personal Care, net service revenues totaled $18.4 million, representing a decline of 11.1% from the year-ago number. The Corporate segment did not register any revenues in the third quarter.
Margins
Gross profit for the company improved 19.7% to $246.4 million in the quarter under review. Gross margin expanded 366 basis points (bps) to 45.3%.
Expense on salaries and benefits rose 23.2% to $123.1 million. However, Other expenses increased 1.8% to $49.3 million. Operating profit of $73.9 million reflected a 28.5% improvement from the year-ago figure. Operating margin also expanded 196 bps to 13.6% from the prior-year level.
Cash Position
Amedisys exited the quarter with cash and cash equivalents of $112.9 million compared with $177.3 million at the end of the second quarter of 2020. The company's long-term obligations (excluding current portion) were $300.6 million at the end of the third quarter compared with $392.7 million at the end of second-quarter 2020.
Cumulative net cash provided by operating activities at the end of the third quarter was $223 million compared with $126.8 million a year ago.
2020 Guidance
The company, taking its third-quarter performance into consideration, updated its full-year guidance.
Amedisys currently projects net service revenues within $2.067 billion to $2.072 billion (compared with the earlier-provided range of $2.04-$2.07 billion). The Zacks Consensus Estimate for the same is pegged at $2.30 billion.
Adjusted EPS is anticipated within $6.02-$6.08 (compared with $4.84-$5.06 guided earlier). The Zacks Consensus Estimate for the same is pegged at $4.58.
Our Take
Amid the coronavirus-led volume disruption across the United States, Amedisys ended the third quarter with better-than-expected earnings and revenues. An impressive performance by the company’s Home health and hospiceamid the pandemic-led business disruptions buoys optimism. Both the segments showed strong recoveries and returned to growth this quarter. The increased full-year guidance by the company instills investors’ confidence.
Zacks Rank and Other Key Picks
Amedisys currently carries a Zacks Rank #2 (Buy).
Some other better-ranked stocks in the broader medical space are West Pharmaceutical Services, Inc. (WST - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Align Technology, Inc. (ALGN - Free Report) .
West Pharmaceutical reported third-quarter 2020 adjusted EPS of $1.15, beating the Zacks Consensus Estimate by 13.9%. Net revenues of $548 million outpaced the consensus estimate by 7.2%. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher, a Zacks Rank #2 company, reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion outpaced the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, surpassing the Zacks Consensus Estimate by a stupendous 281.4%. Net revenues of $734.1 million exceeded the Zacks Consensus Estimate by 38%. It currently sports a Zacks Rank #1.
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Amedisys (AMED) Beats Q3 Earnings Estimates, Ups 2020 View
Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $2.24 for third-quarter 2020, up 94.8% from the year-ago figure. The bottom line beat the Zacks Consensus Estimate by 76.4%.
Net service revenues grossed $485.1 million, up 9.9% year over year. The top line surpassed the Zacks Consensus Estimate by 2.1%.
Quarter in Detail
Within the Home Health division, net service revenues totaled $326 million in the quarter, reflecting 4.7% rise year over year. Within this, Medicare revenues of $222.2 million improved 5.1% year over year. Non-Medicare revenues increased 3.8% to $103.8 million.
Within the Hospice division, net service revenues were $199.7 million (up 22.9% year over year), including Medicare revenues of $189 million (up 23.5%) and non-Medicare revenues of $10.7 million (up 20.2%).
Amedisys, Inc. Price, Consensus and EPS Surprise
Amedisys, Inc. price-consensus-eps-surprise-chart | Amedisys, Inc. Quote
The company’s additional operating segments, post integration, are Personal Care and Corporate. At Personal Care, net service revenues totaled $18.4 million, representing a decline of 11.1% from the year-ago number. The Corporate segment did not register any revenues in the third quarter.
Margins
Gross profit for the company improved 19.7% to $246.4 million in the quarter under review. Gross margin expanded 366 basis points (bps) to 45.3%.
Expense on salaries and benefits rose 23.2% to $123.1 million. However, Other expenses increased 1.8% to $49.3 million. Operating profit of $73.9 million reflected a 28.5% improvement from the year-ago figure. Operating margin also expanded 196 bps to 13.6% from the prior-year level.
Cash Position
Amedisys exited the quarter with cash and cash equivalents of $112.9 million compared with $177.3 million at the end of the second quarter of 2020. The company's long-term obligations (excluding current portion) were $300.6 million at the end of the third quarter compared with $392.7 million at the end of second-quarter 2020.
Cumulative net cash provided by operating activities at the end of the third quarter was $223 million compared with $126.8 million a year ago.
2020 Guidance
The company, taking its third-quarter performance into consideration, updated its full-year guidance.
Amedisys currently projects net service revenues within $2.067 billion to $2.072 billion (compared with the earlier-provided range of $2.04-$2.07 billion). The Zacks Consensus Estimate for the same is pegged at $2.30 billion.
Adjusted EPS is anticipated within $6.02-$6.08 (compared with $4.84-$5.06 guided earlier). The Zacks Consensus Estimate for the same is pegged at $4.58.
Our Take
Amid the coronavirus-led volume disruption across the United States, Amedisys ended the third quarter with better-than-expected earnings and revenues. An impressive performance by the company’s Home health and hospiceamid the pandemic-led business disruptions buoys optimism. Both the segments showed strong recoveries and returned to growth this quarter. The increased full-year guidance by the company instills investors’ confidence.
Zacks Rank and Other Key Picks
Amedisys currently carries a Zacks Rank #2 (Buy).
Some other better-ranked stocks in the broader medical space are West Pharmaceutical Services, Inc. (WST - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Align Technology, Inc. (ALGN - Free Report) .
West Pharmaceutical reported third-quarter 2020 adjusted EPS of $1.15, beating the Zacks Consensus Estimate by 13.9%. Net revenues of $548 million outpaced the consensus estimate by 7.2%. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher, a Zacks Rank #2 company, reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion outpaced the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, surpassing the Zacks Consensus Estimate by a stupendous 281.4%. Net revenues of $734.1 million exceeded the Zacks Consensus Estimate by 38%. It currently sports a Zacks Rank #1.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>