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Amedisys, Inc. (AMED - Free Report) reported first-quarter 2025 adjusted earnings per share (EPS) of $1.25, which rose 21.4% year over year. The metric surpassed the Zacks Consensus Estimate by 10.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The quarter’s adjustments include certain merger-related expenses and other (income)/expenses, net.
GAAP EPS was $1.84 compared with 44 cents in the corresponding period of 2024.
The earnings report, however, did not have any immediate impact on the company's share price of $93.63.
AMED’s Q1 Revenues
Net service revenues were $594.8 million, up 4.1% year over year. The top line was in line with the Zacks Consensus Estimate.
AMED’s Q1 Segmental Performance
Net service revenues from the Home Health division totaled $372.1 million, up 5.8% year over year.
Within the segment, Medicare revenues of $212.1 million decreased 2.7% year over year. Non-Medicare revenues improved 19.7% year over year to $160 million.
Within the Hospice division, net service revenues were $207.9 million (up 3.8% year over year), including Medicare revenues of $197.8 million (up 4.7%) and non-Medicare revenues of $10.1 million (down 10.6%).
The High Acuity Care segment reported net service revenues of $7.7 million compared with $4.4 million in the year-ago quarter. The Corporate segment did not register recognizable revenues in the first quarter.
Margins
The company's gross profit climbed 4.3% to $260.7 million in the quarter under review. However, the gross margin expanded 11 basis points (bps) to 43.8% despite a 3.9% increase in the cost of services (including depreciation).
SG&A expenses on salaries and benefits rose 3.1% to $132 million. Other expenses of $58 million were in line with the year-ago level. The adjusted operating profit amounted to $70.8 million, up 10.6% from the year-ago level. The adjusted operating margin expanded 70 bps to 11.9% from the prior-year figure.
AMED’s Q1 Liquidity and Cash Position
Amedisys exited the first quarter of 2025 with cash and cash equivalents of $284.9 million compared with $303.2 million at the end of the fourth quarter of 2024. The company's long-term obligations (excluding the current portion) totaled $332.9 million compared with $339.3 million in the prior-year quarter.
Net cash provided by operating activities at the end of the first quarter was $105.6 million against $9.8 million net cash used in operating activities in the year-ago period.
Developments on the Pending Merger
Amedisys’ impending merger with UnitedHealth Group’s Optum, announced in June 2023, brings together two organizations dedicated to providing compassionate, value-based, comprehensive care to patients and their families.
On Nov. 12, 2024, the Department of Justice and certain other parties commenced litigation against Amedisys and UnitedHealth Group to block the Merger. Amedisys continues to support UnitedHealth Group in working toward closing the Merger. In December, the companies entered into a new waiver agreement, which extends the merger deadline to 10 days after a final court decision issued in the lawsuit.
Our Take
Amedisys ended the first quarter of 2025 with earnings beating estimates and revenues meeting the same. Home Health service revenues benefited from total volume growth and per-visit rate increases. The Hospice segment’s growth was supported by an increase in reimbursement (effective Oct. 1, 2023) and a slight increase in the average daily census. The High Acuity Care segment achieved its highest total admissions volume since inception.
However, the cost of services in the Hospice and Home Health segments rose mainly due to planned wage increases, wage inflation, investments in hospice clinical staffing and an increase in health insurance costs.
On a positive note, the expansion of both margins in the quarter bodes well for the stock. Additionally, the company’s top and bottom lines surged in the quarter.
AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents, which beat the Zacks Consensus Estimate of a loss of 13 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company beat on earnings in each of the trailing four quarters, the average surprise being 70.9%.
Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, which exceeded the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.
VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.9%.
Masimo, currently sporting a Zacks Rank #1, reported a fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.
MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.4%.
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AMED Stock Trades Flat Despite Q1 Earnings Beat, Margins Rise
Amedisys, Inc. (AMED - Free Report) reported first-quarter 2025 adjusted earnings per share (EPS) of $1.25, which rose 21.4% year over year. The metric surpassed the Zacks Consensus Estimate by 10.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The quarter’s adjustments include certain merger-related expenses and other (income)/expenses, net.
GAAP EPS was $1.84 compared with 44 cents in the corresponding period of 2024.
The earnings report, however, did not have any immediate impact on the company's share price of $93.63.
AMED’s Q1 Revenues
Net service revenues were $594.8 million, up 4.1% year over year. The top line was in line with the Zacks Consensus Estimate.
AMED’s Q1 Segmental Performance
Net service revenues from the Home Health division totaled $372.1 million, up 5.8% year over year.
Within the segment, Medicare revenues of $212.1 million decreased 2.7% year over year. Non-Medicare revenues improved 19.7% year over year to $160 million.
Within the Hospice division, net service revenues were $207.9 million (up 3.8% year over year), including Medicare revenues of $197.8 million (up 4.7%) and non-Medicare revenues of $10.1 million (down 10.6%).
The High Acuity Care segment reported net service revenues of $7.7 million compared with $4.4 million in the year-ago quarter. The Corporate segment did not register recognizable revenues in the first quarter.
Margins
The company's gross profit climbed 4.3% to $260.7 million in the quarter under review. However, the gross margin expanded 11 basis points (bps) to 43.8% despite a 3.9% increase in the cost of services (including depreciation).
SG&A expenses on salaries and benefits rose 3.1% to $132 million. Other expenses of $58 million were in line with the year-ago level. The adjusted operating profit amounted to $70.8 million, up 10.6% from the year-ago level. The adjusted operating margin expanded 70 bps to 11.9% from the prior-year figure.
AMED’s Q1 Liquidity and Cash Position
Amedisys exited the first quarter of 2025 with cash and cash equivalents of $284.9 million compared with $303.2 million at the end of the fourth quarter of 2024. The company's long-term obligations (excluding the current portion) totaled $332.9 million compared with $339.3 million in the prior-year quarter.
Net cash provided by operating activities at the end of the first quarter was $105.6 million against $9.8 million net cash used in operating activities in the year-ago period.
Developments on the Pending Merger
Amedisys’ impending merger with UnitedHealth Group’s Optum, announced in June 2023, brings together two organizations dedicated to providing compassionate, value-based, comprehensive care to patients and their families.
Amedisys, Inc. Price, Consensus and EPS Surprise
Amedisys, Inc. price-consensus-eps-surprise-chart | Amedisys, Inc. Quote
On Nov. 12, 2024, the Department of Justice and certain other parties commenced litigation against Amedisys and UnitedHealth Group to block the Merger. Amedisys continues to support UnitedHealth Group in working toward closing the Merger. In December, the companies entered into a new waiver agreement, which extends the merger deadline to 10 days after a final court decision issued in the lawsuit.
Our Take
Amedisys ended the first quarter of 2025 with earnings beating estimates and revenues meeting the same. Home Health service revenues benefited from total volume growth and per-visit rate increases. The Hospice segment’s growth was supported by an increase in reimbursement (effective Oct. 1, 2023) and a slight increase in the average daily census. The High Acuity Care segment achieved its highest total admissions volume since inception.
However, the cost of services in the Hospice and Home Health segments rose mainly due to planned wage increases, wage inflation, investments in hospice clinical staffing and an increase in health insurance costs.
On a positive note, the expansion of both margins in the quarter bodes well for the stock. Additionally, the company’s top and bottom lines surged in the quarter.
AMED’s Zacks Rank & Key Picks
AMED currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are AngioDynamics (ANGO - Free Report) , Veeva Systems (VEEV - Free Report) and Masimo (MASI - Free Report) .
AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents, which beat the Zacks Consensus Estimate of a loss of 13 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company beat on earnings in each of the trailing four quarters, the average surprise being 70.9%.
Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, which exceeded the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.
VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.9%.
Masimo, currently sporting a Zacks Rank #1, reported a fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.
MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.4%.