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Why Is Amedisys (AMED) Up 1.8% 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 added about 1.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Amedisys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Amedisys Q4 Earnings Beat Estimates, Revenues Miss
Amedisys reported adjusted earnings per share of $1.49 for fourth-quarter 2020, up 58.5% from the year-ago figure. The bottom line beat the Zacks Consensus Estimate by 2.8%.
The quarter’s adjustments include certain COVID-related costs as well as benefits from CARES Act & State COVID-19 grants.
Net service revenues grossed $550.7 million, up 9.9% year over year. The top line missed the Zacks Consensus Estimate by 0.2%.
2020 at a Glance
Adjusted earnings per share for the year was $6.11, up 38.9% from that in 2019. The figure also beat the consensus mark by 0.5%.
Full-year 2020 net service revenues totaled $2.07 billion, which improved 5.9% from the previous year. However, the top line is in line with the Zacks Consensus Estimate.
Quarter in Detail
Within the Home Health division, net service revenues totaled $329.4 million in the quarter, reflecting a 4.2% rise year over year. Within this segment, Medicare revenues of $228.3 million improved 6.1% year over year. Non-Medicare revenues increased 0.1% to $101.1million.
Within the Hospice division, net service revenues were $203.9 million (up 23.9% year over year), including Medicare revenues of $193.5 million (up 23.6%) and non-Medicare revenues of $10.4 million (up 30%).
The company’s additional operating segments, post integration, are Personal Care and Corporate. At Personal Care, net service revenues totaled $17.4 million, representing a decline of 12.6% from the year-ago number. The Corporate segment did not register any revenues in the fourth quarter.
Margins
Gross profit for the company improved 18.9% to $243.9 million in the quarter under review. Gross margin expanded 334 basis points (bps) to 44.3%.
Expenses on salaries and benefits rose 17.6% to $119.1 million. Other expenses increased 2.8% to $49.5 million. Adjusted operating profit of $75.3 million reflected a 35.5% improvement from the year-ago quarter. Adjusted operating margin expanded 258 bps to 13.7% from the prior-year level.
Cash Position
Amedisys exited 2020 with cash and cash equivalents of $81.8 million compared with $30.3 million at 2019-end. The company's long-term obligations (excluding the current portion) were $204.5 million at the end of 2020 compared with $232.3 million at the end of 2019.
Cumulative net cash provided by operating activities at the end of 2020 was $288.9 million compared with $202 million a year ago.
2021 Guidance
Amedisys announced its outlook for 2021.
For full-year 2021, the company anticipates net service revenues of $2.27-$2.31 billion. The Zacks Consensus Estimate for the same is pegged at $2.32 billion.
Adjusted earnings per share are projected to be $6.25-$6.47. The Zacks Consensus Estimate for the metric is pegged at $6.28.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, Amedisys has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Amedisys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Amedisys (AMED) Up 1.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Amedisys (AMED - Free Report) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Amedisys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Amedisys Q4 Earnings Beat Estimates, Revenues Miss
Amedisys reported adjusted earnings per share of $1.49 for fourth-quarter 2020, up 58.5% from the year-ago figure. The bottom line beat the Zacks Consensus Estimate by 2.8%.
The quarter’s adjustments include certain COVID-related costs as well as benefits from CARES Act & State COVID-19 grants.
Net service revenues grossed $550.7 million, up 9.9% year over year. The top line missed the Zacks Consensus Estimate by 0.2%.
2020 at a Glance
Adjusted earnings per share for the year was $6.11, up 38.9% from that in 2019. The figure also beat the consensus mark by 0.5%.
Full-year 2020 net service revenues totaled $2.07 billion, which improved 5.9% from the previous year. However, the top line is in line with the Zacks Consensus Estimate.
Quarter in Detail
Within the Home Health division, net service revenues totaled $329.4 million in the quarter, reflecting a 4.2% rise year over year. Within this segment, Medicare revenues of $228.3 million improved 6.1% year over year. Non-Medicare revenues increased 0.1% to $101.1million.
Within the Hospice division, net service revenues were $203.9 million (up 23.9% year over year), including Medicare revenues of $193.5 million (up 23.6%) and non-Medicare revenues of $10.4 million (up 30%).
The company’s additional operating segments, post integration, are Personal Care and Corporate. At Personal Care, net service revenues totaled $17.4 million, representing a decline of 12.6% from the year-ago number. The Corporate segment did not register any revenues in the fourth quarter.
Margins
Gross profit for the company improved 18.9% to $243.9 million in the quarter under review. Gross margin expanded 334 basis points (bps) to 44.3%.
Expenses on salaries and benefits rose 17.6% to $119.1 million. Other expenses increased 2.8% to $49.5 million. Adjusted operating profit of $75.3 million reflected a 35.5% improvement from the year-ago quarter. Adjusted operating margin expanded 258 bps to 13.7% from the prior-year level.
Cash Position
Amedisys exited 2020 with cash and cash equivalents of $81.8 million compared with $30.3 million at 2019-end. The company's long-term obligations (excluding the current portion) were $204.5 million at the end of 2020 compared with $232.3 million at the end of 2019.
Cumulative net cash provided by operating activities at the end of 2020 was $288.9 million compared with $202 million a year ago.
2021 Guidance
Amedisys announced its outlook for 2021.
For full-year 2021, the company anticipates net service revenues of $2.27-$2.31 billion. The Zacks Consensus Estimate for the same is pegged at $2.32 billion.
Adjusted earnings per share are projected to be $6.25-$6.47. The Zacks Consensus Estimate for the metric is pegged at $6.28.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, Amedisys has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Amedisys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.