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Amedisys (AMED) Q3 Earnings Miss Estimates, Guidance Cut
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Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $1.15 for third-quarter 2022, down 24.8% from the year-ago figure. The bottom line also missed the Zacks Consensus Estimate by 7.3%.
The quarter’s adjustments include certain acquisition and integration costs, centralization and reorganization costs, COVID-19 costs and fuel supplement expenses, among others.
GAAP EPS for the third quarter was 79 cents, down 48.3% from the year-ago figure.
Net service revenues grossed $558.9 million, up 0.9% year over year. The top line lagged the Zacks Consensus Estimate by 3.4%.
Segment in Detail
Within the Home Health division, net service revenues totaled $337.2 million in the quarter, reflecting a 0.4% drop year over year. Within this segment, Medicare revenues of $222.4 million dropped 2.5% year over year. Non-Medicare revenues increased 3.9% to $114.8 million.
Within the Hospice division, net service revenues were $198.7 million (up 0.6% year over year), including Medicare revenues of $187.8 million (flat year over year) and non-Medicare revenues of $10.9 million (up 12.3%).
At Personal Care, net service revenues totaled $16.6 million, reflecting a 4.4% improvement from the year-ago number.
Margins
Gross profit declined 3.1% to $235.8 million in the quarter under review. The gross margin contracted 169 basis points (bps) to 42.3%.
Expenses on salaries and benefits rose 5.2% to $125.6 million. Adjusted operating profit of $110.2 million reflected a 10.9% decline from the year-ago quarter. Adjusted operating margin contracted 262 bps to 19.8% from the prior-year level.
Liquidity and Cash Position
Amedisys exited the third quarter of 2022 with cash and cash equivalents of $17.9 million compared with $67.8 million at the end of Q2. The company's long-term obligations (excluding the current portion) were $443.4 million at the end of the third quarter of 2022, compared with $442.4 million at the end of the second quarter of 2022.
Cumulative net cash provided by operating activities at the end of the third quarter of 2022 was $92.4 million compared with $183.7 million a year ago.
2022 Guidance
Amedisys has reduced its guidance for 2022.
For full-year 2022, the company now anticipates net service revenues in the range of $2.224 billion to $2.230 billion (down from the earlier-projected band of $2.290 billion to $2.310 billion). The Zacks Consensus Estimate for 2022 revenues is pegged at $2.29 billion.
The adjusted EPS view was reduced to the range of $4.82 to $4.93 (from $5.23 to $5.45 expected previously). The Zacks Consensus Estimate for the same is pegged at $5.18.
Our Take
Amedisys ended the third quarter of 2022 on a disappointing note, with lower-than-expected earnings and revenues. According to the company, nurse staffing shortages continued to be a widespread challenge for the organizations across its health care system, accounting for 59% of Amedisys volume miss within the live joint venture partnerships in 2022. Within Home Health and Hospice, the reinstatement of sequestration marred growth.
Giventhe current labor market dynamics, payer mix shifts in home health, the pressure on hospice admissions and length of stay in continued investments in Contessa, Amedisys reduced its guidance for 2022.
Zacks Rank and Key Picks
Amedisys currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Elevance Health Inc. (ELV - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Centene Corporation (CNC - Free Report) .
Elevance Health, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $7.53, which beat the Zacks Consensus Estimate by 6.1%. Revenues of $39.63 billion outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health has an estimated long-term growth rate of 12%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average being 4.1%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 29.7% for full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Centene, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of $1.30, which beat the Zacks Consensus Estimate by 6.6%. Revenues of $35.87 billion outpaced the consensus mark by 1.1%.
Centene has an estimated long-term growth rate of 14.2%. CNC’s earnings surpassed estimates in all the trailing four quarters, the average being 5.2%.
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Amedisys (AMED) Q3 Earnings Miss Estimates, Guidance Cut
Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $1.15 for third-quarter 2022, down 24.8% from the year-ago figure. The bottom line also missed the Zacks Consensus Estimate by 7.3%.
The quarter’s adjustments include certain acquisition and integration costs, centralization and reorganization costs, COVID-19 costs and fuel supplement expenses, among others.
GAAP EPS for the third quarter was 79 cents, down 48.3% from the year-ago figure.
Net service revenues grossed $558.9 million, up 0.9% year over year. The top line lagged the Zacks Consensus Estimate by 3.4%.
Segment in Detail
Within the Home Health division, net service revenues totaled $337.2 million in the quarter, reflecting a 0.4% drop year over year. Within this segment, Medicare revenues of $222.4 million dropped 2.5% year over year. Non-Medicare revenues increased 3.9% to $114.8 million.
Amedisys, Inc. Price, Consensus and EPS Surprise
Amedisys, Inc. price-consensus-eps-surprise-chart | Amedisys, Inc. Quote
Within the Hospice division, net service revenues were $198.7 million (up 0.6% year over year), including Medicare revenues of $187.8 million (flat year over year) and non-Medicare revenues of $10.9 million (up 12.3%).
At Personal Care, net service revenues totaled $16.6 million, reflecting a 4.4% improvement from the year-ago number.
Margins
Gross profit declined 3.1% to $235.8 million in the quarter under review. The gross margin contracted 169 basis points (bps) to 42.3%.
Expenses on salaries and benefits rose 5.2% to $125.6 million. Adjusted operating profit of $110.2 million reflected a 10.9% decline from the year-ago quarter. Adjusted operating margin contracted 262 bps to 19.8% from the prior-year level.
Liquidity and Cash Position
Amedisys exited the third quarter of 2022 with cash and cash equivalents of $17.9 million compared with $67.8 million at the end of Q2. The company's long-term obligations (excluding the current portion) were $443.4 million at the end of the third quarter of 2022, compared with $442.4 million at the end of the second quarter of 2022.
Cumulative net cash provided by operating activities at the end of the third quarter of 2022 was $92.4 million compared with $183.7 million a year ago.
2022 Guidance
Amedisys has reduced its guidance for 2022.
For full-year 2022, the company now anticipates net service revenues in the range of $2.224 billion to $2.230 billion (down from the earlier-projected band of $2.290 billion to $2.310 billion). The Zacks Consensus Estimate for 2022 revenues is pegged at $2.29 billion.
The adjusted EPS view was reduced to the range of $4.82 to $4.93 (from $5.23 to $5.45 expected previously). The Zacks Consensus Estimate for the same is pegged at $5.18.
Our Take
Amedisys ended the third quarter of 2022 on a disappointing note, with lower-than-expected earnings and revenues. According to the company, nurse staffing shortages continued to be a widespread challenge for the organizations across its health care system, accounting for 59% of Amedisys volume miss within the live joint venture partnerships in 2022. Within Home Health and Hospice, the reinstatement of sequestration marred growth.
Giventhe current labor market dynamics, payer mix shifts in home health, the pressure on hospice admissions and length of stay in continued investments in Contessa, Amedisys reduced its guidance for 2022.
Zacks Rank and Key Picks
Amedisys currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Elevance Health Inc. (ELV - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Centene Corporation (CNC - Free Report) .
Elevance Health, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $7.53, which beat the Zacks Consensus Estimate by 6.1%. Revenues of $39.63 billion outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health has an estimated long-term growth rate of 12%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average being 4.1%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 29.7% for full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Centene, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of $1.30, which beat the Zacks Consensus Estimate by 6.6%. Revenues of $35.87 billion outpaced the consensus mark by 1.1%.
Centene has an estimated long-term growth rate of 14.2%. CNC’s earnings surpassed estimates in all the trailing four quarters, the average being 5.2%.