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Amedisys (AMED) Q1 Earnings Surpass Estimates, Margins Down
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Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $1.23 for first-quarter 2022, down 20.1% from the year-ago figure. The bottom line, however, beat the Zacks Consensus Estimate by 10.8%.
The quarter’s adjustments include contingency accrual, certain COVID-related costs as well as benefits from CARES Act & State COVID-19 grants.
GAAP EPS for the first quarter was 97 cents, down 35.3% compared with the year-ago $1.50.
Net service revenues grossed $545.3 million, up 1.5% year over year. However, the top line lagged the Zacks Consensus Estimate by 2.3%.
Segment in Detail
Within the Home Health division, net service revenues totaled $335.5 million in the quarter, reflecting a 2.1% rise year over year. Within this segment, Medicare revenues of $224.1 million improved 1.2% year over year. Non-Medicare revenues increased 3.9% to $111.4 million.
Within the Hospice division, net service revenues were $193.1 million (up 0.8% year over year), including Medicare revenues of $182.5 million (up 0.6%) and non-Medicare revenues of $10.6 million (up 6%).
At Personal Care, net service revenues totaled $14 million, reflecting a decline of 17.6% from the year-ago number. The High Acuity Care segment reported net service revenues of $2.7 million in the first quarter. The Corporate segment did not register any recognizable revenue in the first quarter.
Margins
Gross profit for the company rose 0.2% to $240.4 million in the quarter under review. Gross margin contracted 57 basis points (bps) to 44.1%.
Expenses on salaries and benefits rose 6.6% to $123.5 million. Other expenses rose 9.2% to $53.6 million. Adjusted operating profit of $55.9 million reflected a 17.3% decline from the year-ago quarter. Adjusted operating margin contracted 234 bps to 10.3% from the prior-year level.
Liquidity and Cash Position
Amedisys exited the first quarter of 2022 with cash and cash equivalents of $67.8 million compared with $42.7 million at the end of the fourth quarter of 2021. The company's long-term obligations (excluding the current portion) were $429.5 million at the end of the first quarter of 2022, compared with $432.1 million at the end of the fourth quarter of 2021.
Cumulative net cash provided by operating activities at the end of the first quarter of 2022 was $48.6 million compared with $54 million a year ago.
2022 Guidance
Amedisys has reaffirmed its outlook for 2022.
For full-year 2022, the company anticipates net service revenues in the range of $2.330 billion to $2.365 billion. The Zacks Consensus Estimate for 2022 revenues is pegged at $2.36 billion.
Adjusted EPS is projected in the range of $5.23-$5.45. The Zacks Consensus Estimate for the same is pegged at $5.31.
Our Take
Amedisys ended the first quarter of 2022 on a mixed note, with better-than-expected earnings and a revenue miss. The top line registered year-over-year growth on robust performances across the Home Health and Hospice segments. Further, improved revenues from the Medicare and Non-Medicare buoy optimism for the company. The company has reaffirmed its outlook for 2022, which buoys optimism in the stock. However, a year-over-year decline in Personal Care revenues does not bode well. A spike in operating costs and the contraction of both margins are other downsides.
Zacks Rank and Key Picks
Amedisys currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Qiagen N.V. (QGEN - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Centene Corporation (CNC - Free Report) .
Qiagen, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of 80 cents, which beat the Zacks Consensus Estimate by 12.7%. Revenues of $628.4 million outpaced the consensus mark by 6.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Qiagen has an estimated long-term growth rate of 11.5%. QGEN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 11.7%.
UnitedHealth, having a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Centene reported first-quarter 2022 adjusted EPS of $1.83, which surpassed the Zacks Consensus Estimate by 8.9%. First-quarter revenues of $80.1 billion outpaced the Zacks Consensus Estimate by 1.9%. It currently has a Zacks Rank #2.
Centene has an estimated long-term growth rate of 14.2%. CNC has an earnings yield of 6.6% compared with the industry’s 5.6%.
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Amedisys (AMED) Q1 Earnings Surpass Estimates, Margins Down
Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $1.23 for first-quarter 2022, down 20.1% from the year-ago figure. The bottom line, however, beat the Zacks Consensus Estimate by 10.8%.
The quarter’s adjustments include contingency accrual, certain COVID-related costs as well as benefits from CARES Act & State COVID-19 grants.
GAAP EPS for the first quarter was 97 cents, down 35.3% compared with the year-ago $1.50.
Net service revenues grossed $545.3 million, up 1.5% year over year. However, the top line lagged the Zacks Consensus Estimate by 2.3%.
Segment in Detail
Within the Home Health division, net service revenues totaled $335.5 million in the quarter, reflecting a 2.1% rise year over year. Within this segment, Medicare revenues of $224.1 million improved 1.2% year over year. Non-Medicare revenues increased 3.9% to $111.4 million.
Within the Hospice division, net service revenues were $193.1 million (up 0.8% year over year), including Medicare revenues of $182.5 million (up 0.6%) and non-Medicare revenues of $10.6 million (up 6%).
At Personal Care, net service revenues totaled $14 million, reflecting a decline of 17.6% from the year-ago number. The High Acuity Care segment reported net service revenues of $2.7 million in the first quarter. The Corporate segment did not register any recognizable revenue in the first quarter.
Margins
Gross profit for the company rose 0.2% to $240.4 million in the quarter under review. Gross margin contracted 57 basis points (bps) to 44.1%.
Amedisys, Inc. Price, Consensus and EPS Surprise
Expenses on salaries and benefits rose 6.6% to $123.5 million. Other expenses rose 9.2% to $53.6 million. Adjusted operating profit of $55.9 million reflected a 17.3% decline from the year-ago quarter. Adjusted operating margin contracted 234 bps to 10.3% from the prior-year level.
Liquidity and Cash Position
Amedisys exited the first quarter of 2022 with cash and cash equivalents of $67.8 million compared with $42.7 million at the end of the fourth quarter of 2021. The company's long-term obligations (excluding the current portion) were $429.5 million at the end of the first quarter of 2022, compared with $432.1 million at the end of the fourth quarter of 2021.
Cumulative net cash provided by operating activities at the end of the first quarter of 2022 was $48.6 million compared with $54 million a year ago.
2022 Guidance
Amedisys has reaffirmed its outlook for 2022.
For full-year 2022, the company anticipates net service revenues in the range of $2.330 billion to $2.365 billion. The Zacks Consensus Estimate for 2022 revenues is pegged at $2.36 billion.
Adjusted EPS is projected in the range of $5.23-$5.45. The Zacks Consensus Estimate for the same is pegged at $5.31.
Our Take
Amedisys ended the first quarter of 2022 on a mixed note, with better-than-expected earnings and a revenue miss. The top line registered year-over-year growth on robust performances across the Home Health and Hospice segments. Further, improved revenues from the Medicare and Non-Medicare buoy optimism for the company. The company has reaffirmed its outlook for 2022, which buoys optimism in the stock. However, a year-over-year decline in Personal Care revenues does not bode well. A spike in operating costs and the contraction of both margins are other downsides.
Zacks Rank and Key Picks
Amedisys currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Qiagen N.V. (QGEN - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Centene Corporation (CNC - Free Report) .
Qiagen, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of 80 cents, which beat the Zacks Consensus Estimate by 12.7%. Revenues of $628.4 million outpaced the consensus mark by 6.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Qiagen has an estimated long-term growth rate of 11.5%. QGEN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 11.7%.
UnitedHealth, having a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Centene reported first-quarter 2022 adjusted EPS of $1.83, which surpassed the Zacks Consensus Estimate by 8.9%. First-quarter revenues of $80.1 billion outpaced the Zacks Consensus Estimate by 1.9%. It currently has a Zacks Rank #2.
Centene has an estimated long-term growth rate of 14.2%. CNC has an earnings yield of 6.6% compared with the industry’s 5.6%.