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Amedisys (AMED) Q1 Earnings Beat Estimates, 2021 View Up
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Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $1.54 for first-quarter 2021, up 46.7% from the year-ago figure. The bottom line beat the Zacks Consensus Estimate by 7.7%.
The quarter’s adjustments include certain COVID-related costs as well as benefits from CARES Act & State COVID-19 grants.
GAAP EPS for the first quarter was $1.50, up 56.3% compared with the year-ago 96 cents.
Net service revenues grossed $537.1 million, up 9.2% year over year. The top line missed the Zacks Consensus Estimate by 1.8%.
Segment in Detail
Within the Home Health division, net service revenues totaled $328.6 million in the quarter, reflecting an 8.2% rise year over year. Within this segment, Medicare revenues of $221.4 million improved 8.6% year over year. Non-Medicare revenues increased 7.5% to $107.2 million.
Within the Hospice division, net service revenues were $191.5 million (up 13% year over year), including Medicare revenues of $181.5 million (up 13.1%) and non-Medicare revenues of $10 million (up 12.4%).
At Personal Care, net service revenues totaled $17 million, reflecting a decline of 9.1% from the year-ago number. The Corporate segment did not register any revenues in the first quarter.
Margins
Gross profit for the company improved 16.5% to $239.9 million in the quarter under review. Gross margin expanded 278 basis points (bps) to 44.7%.
Expenses on salaries and benefits rose 14% to $115.8 million. Other expenses fell 0.3% to $49.1 million. Adjusted operating profit of $75 million reflected a 36% improvement from the year-ago quarter. Adjusted operating margin expanded 275 bps to 13.9% from the prior-year level.
Liquidity and Cash Position
Amedisys exited the first quarter of 2021 with cash and cash equivalents of $77.3 million compared with $81.8 million at the end of fourth-quarter 2020. The company's long-term obligations (excluding the current portion) were $231.4 million at the end of the first quarter compared with $204.5 million at the end of last reported quarter.
Cumulative net cash provided by operating activities at the end of the first quarter was $54 million compared with $288.9 million at the end of fourth-quarter 2020.
2021 Guidance
Amedisys raised its outlook for 2021.
For 2021, the company anticipates net service revenues in the range of $2.30-$2.34 billion compared with the previous guidance of $2.27-$2.31 billion. The Zacks Consensus Estimate for the same is pegged at $2.31 billion.
Adjusted earnings per share are projected in the range of $6.85-$7.07 compared with the prior guidance of $6.25-$6.47. The Zacks Consensus Estimate for the metric is pegged at $6.38.
Our Take
Amid the coronavirus-led volume disruption across the United States, Amedisys ended the first quarter on a mixed note with better-than-expected earnings and a revenue miss.
On a positive note, both Home Health and Hospice divisions registered year-over-year growth. Expansion of both margins looks encouraging as well. The company raised its financial guidance for 2021, projecting year-over-year growth in revenues and earnings. However, the increase in expenses compared to the prior year is a concern.
Zacks Rank and Key Picks
Currently, Amedisys carries a Zacks Rank #3 (Hold).
Semler is expected to release results on May 3. The Zacks Consensus Estimate for the company’s first-quarter 2021 adjusted EPS is currently pegged at 48 cents. The consensus mark for first-quarter revenues stands at $11.9 million. The company currently sports a Zacks Rank #1.
Owens & Minor is scheduled to release results on May 5. The Zacks Consensus Estimate for its first-quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion. The company currently carries a Zacks Rank #2 (Buy).
DENTSPLY SIRONA is slated to release results on May 6. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is currently pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million. The company currently carries a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Amedisys (AMED) Q1 Earnings Beat Estimates, 2021 View Up
Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $1.54 for first-quarter 2021, up 46.7% from the year-ago figure. The bottom line beat the Zacks Consensus Estimate by 7.7%.
The quarter’s adjustments include certain COVID-related costs as well as benefits from CARES Act & State COVID-19 grants.
GAAP EPS for the first quarter was $1.50, up 56.3% compared with the year-ago 96 cents.
Net service revenues grossed $537.1 million, up 9.2% year over year. The top line missed the Zacks Consensus Estimate by 1.8%.
Segment in Detail
Within the Home Health division, net service revenues totaled $328.6 million in the quarter, reflecting an 8.2% rise year over year. Within this segment, Medicare revenues of $221.4 million improved 8.6% year over year. Non-Medicare revenues increased 7.5% to $107.2 million.
Within the Hospice division, net service revenues were $191.5 million (up 13% year over year), including Medicare revenues of $181.5 million (up 13.1%) and non-Medicare revenues of $10 million (up 12.4%).
Amedisys, Inc. Price, Consensus and EPS Surprise
Amedisys, Inc. price-consensus-eps-surprise-chart | Amedisys, Inc. Quote
At Personal Care, net service revenues totaled $17 million, reflecting a decline of 9.1% from the year-ago number. The Corporate segment did not register any revenues in the first quarter.
Margins
Gross profit for the company improved 16.5% to $239.9 million in the quarter under review. Gross margin expanded 278 basis points (bps) to 44.7%.
Expenses on salaries and benefits rose 14% to $115.8 million. Other expenses fell 0.3% to $49.1 million. Adjusted operating profit of $75 million reflected a 36% improvement from the year-ago quarter. Adjusted operating margin expanded 275 bps to 13.9% from the prior-year level.
Liquidity and Cash Position
Amedisys exited the first quarter of 2021 with cash and cash equivalents of $77.3 million compared with $81.8 million at the end of fourth-quarter 2020. The company's long-term obligations (excluding the current portion) were $231.4 million at the end of the first quarter compared with $204.5 million at the end of last reported quarter.
Cumulative net cash provided by operating activities at the end of the first quarter was $54 million compared with $288.9 million at the end of fourth-quarter 2020.
2021 Guidance
Amedisys raised its outlook for 2021.
For 2021, the company anticipates net service revenues in the range of $2.30-$2.34 billion compared with the previous guidance of $2.27-$2.31 billion. The Zacks Consensus Estimate for the same is pegged at $2.31 billion.
Adjusted earnings per share are projected in the range of $6.85-$7.07 compared with the prior guidance of $6.25-$6.47. The Zacks Consensus Estimate for the metric is pegged at $6.38.
Our Take
Amid the coronavirus-led volume disruption across the United States, Amedisys ended the first quarter on a mixed note with better-than-expected earnings and a revenue miss.
On a positive note, both Home Health and Hospice divisions registered year-over-year growth. Expansion of both margins looks encouraging as well. The company raised its financial guidance for 2021, projecting year-over-year growth in revenues and earnings. However, the increase in expenses compared to the prior year is a concern.
Zacks Rank and Key Picks
Currently, Amedisys carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space include Semler Scientific Inc. , Owens & Minor, Inc. (OMI - Free Report) and DENTSPLY SIRONA Inc. (XRAY - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Semler is expected to release results on May 3. The Zacks Consensus Estimate for the company’s first-quarter 2021 adjusted EPS is currently pegged at 48 cents. The consensus mark for first-quarter revenues stands at $11.9 million. The company currently sports a Zacks Rank #1.
Owens & Minor is scheduled to release results on May 5. The Zacks Consensus Estimate for its first-quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion. The company currently carries a Zacks Rank #2 (Buy).
DENTSPLY SIRONA is slated to release results on May 6. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is currently pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million. The company currently carries a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>