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Why Is Amedisys (AMED) Down 2.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Amedisys (AMED - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amedisys due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Amedisys Q4 Earnings Miss Estimates, Margins Rise
Amedisys, Inc. reported adjusted earnings per share of 94 cents in the fourth quarter of 2023, plunging 18.9% from the year-ago quarter’s figure of $1.16 per share. The bottom line missed the Zacks Consensus Estimate by 9.6%.
The quarter’s adjustments include certain merger related expenses, clinical optimization and CEO transition costs. GAAP earnings per share in the fourth quarter was 59 cents, in line with the year-ago figure of 97 cents.
For the full year, adjusted earnings were $4.30 per share, reflecting a 14.2% fall from the year-ago period. It lagged the Zacks Consensus Estimate by 4.2%.
Revenues
Net service revenues totaled $570.8 million, up 1.6% year over year. The top line surpassed the Zacks Consensus Estimate by 1.1%.
Total revenues for 2023 were $2.24 billion, reflecting a 0.6% rise from the year-ago period. The figure lagged the Zacks Consensus Estimate by 3%.
Segments in Detail
Net service revenues from the Home Health Division totaled $358.9 million in the quarter, up 4.3% year over year. Within the segment, Medicare revenues of $221.1 million dropped 1.6% year over year. Non-Medicare revenues increased 14.7% to $137.8 million.
Within the Hospice Division, net service revenues were $206 million (up 4.2% year over year), including Medicare revenues of $186.3 million (up 4.2%) and non-Medicare revenues of $11.3 million (up 4.4%).
The High Acuity Care segment reported net service revenues of $5.9 million in the fourth quarter, surging 63.9% from the year-ago quarter’s figure of $3.6 million. The Corporate segment did not register any recognizable revenues in the fourth quarter.
Margins
The company's gross profit improved 1.8% to $249.4 million in the quarter under review. Gross margin expanded 12 basis points (bps) to 43.7%. Expenses on salaries and benefits rose 6.5% to $140.6 million. Other expenses fell 14.6% to $51.9 million. The adjusted operating profit amounted to $56.8 million, up 9.1% from the year-ago quarter’s levels. The adjusted operating margin expanded 69 bps to 9.9% from the prior-year quarter’s level.
Liquidity and Cash Position
Amedisys exited 2023 with cash and cash equivalents of $126.5 million compared with $40.5 million at the end of 2022. The company's long-term obligations (excluding the current portion) were $361.9 million at the end of 2023, compared with $419.4 million at the end of 2022.
Cumulative net cash used by operating activities at the end of the fourth quarter was $137.2 million compared with $133.3 million a year ago.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Amedisys has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Amedisys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Amedisys is part of the Zacks Medical - Outpatient and Home Healthcare industry. Over the past month, Encompass Health (EHC - Free Report) , a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
Encompass Health reported revenues of $1.25 billion in the last reported quarter, representing a year-over-year change of +9.6%. EPS of $0.95 for the same period compares with $0.88 a year ago.
Encompass Health is expected to post earnings of $0.93 per share for the current quarter, representing a year-over-year change of +5.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
Encompass Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is Amedisys (AMED) Down 2.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Amedisys (AMED - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amedisys due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Amedisys Q4 Earnings Miss Estimates, Margins Rise
Amedisys, Inc. reported adjusted earnings per share of 94 cents in the fourth quarter of 2023, plunging 18.9% from the year-ago quarter’s figure of $1.16 per share. The bottom line missed the Zacks Consensus Estimate by 9.6%.
The quarter’s adjustments include certain merger related expenses, clinical optimization and CEO transition costs. GAAP earnings per share in the fourth quarter was 59 cents, in line with the year-ago figure of 97 cents.
For the full year, adjusted earnings were $4.30 per share, reflecting a 14.2% fall from the year-ago period. It lagged the Zacks Consensus Estimate by 4.2%.
Revenues
Net service revenues totaled $570.8 million, up 1.6% year over year. The top line surpassed the Zacks Consensus Estimate by 1.1%.
Total revenues for 2023 were $2.24 billion, reflecting a 0.6% rise from the year-ago period. The figure lagged the Zacks Consensus Estimate by 3%.
Segments in Detail
Net service revenues from the Home Health Division totaled $358.9 million in the quarter, up 4.3% year over year. Within the segment, Medicare revenues of $221.1 million dropped 1.6% year over year. Non-Medicare revenues increased 14.7% to $137.8 million.
Within the Hospice Division, net service revenues were $206 million (up 4.2% year over year), including Medicare revenues of $186.3 million (up 4.2%) and non-Medicare revenues of $11.3 million (up 4.4%).
The High Acuity Care segment reported net service revenues of $5.9 million in the fourth quarter, surging 63.9% from the year-ago quarter’s figure of $3.6 million. The Corporate segment did not register any recognizable revenues in the fourth quarter.
Margins
The company's gross profit improved 1.8% to $249.4 million in the quarter under review. Gross margin expanded 12 basis points (bps) to 43.7%. Expenses on salaries and benefits rose 6.5% to $140.6 million. Other expenses fell 14.6% to $51.9 million. The adjusted operating profit amounted to $56.8 million, up 9.1% from the year-ago quarter’s levels. The adjusted operating margin expanded 69 bps to 9.9% from the prior-year quarter’s level.
Liquidity and Cash Position
Amedisys exited 2023 with cash and cash equivalents of $126.5 million compared with $40.5 million at the end of 2022. The company's long-term obligations (excluding the current portion) were $361.9 million at the end of 2023, compared with $419.4 million at the end of 2022.
Cumulative net cash used by operating activities at the end of the fourth quarter was $137.2 million compared with $133.3 million a year ago.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Amedisys has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Amedisys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Amedisys is part of the Zacks Medical - Outpatient and Home Healthcare industry. Over the past month, Encompass Health (EHC - Free Report) , a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
Encompass Health reported revenues of $1.25 billion in the last reported quarter, representing a year-over-year change of +9.6%. EPS of $0.95 for the same period compares with $0.88 a year ago.
Encompass Health is expected to post earnings of $0.93 per share for the current quarter, representing a year-over-year change of +5.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
Encompass Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.