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Amedisys (AMED) Down 3.5% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Amedisys (AMED - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amedisys due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Amedisys Gains Ground on Solid Home Health Arm in Q4
Amedisys reported adjusted earnings per share (EPS) of 91 cents in the fourth quarter of 2018, up 62.5% from the year-ago 56 cents. The bottom line beat the Zacks Consensus Estimate of 85 cents by 7.1%.
Adjusted EPS in 2018 came in at $3.63, up 64.3% year over year. The figure also surpassed the Zacks Consensus Estimate of $3.58 by 1.4%.
Net service revenues grossed $434.4 million, up 9.1% year over year. Moreover, the top line beat the Zacks Consensus Estimate by 1.9%.
Revenues in 2018 came in at $1.66 billion, up 9.9% year over year. The figure was in line with the Zacks Consensus Estimate.
Quarter in Detail
Within the company's Home Health division, net service revenues totaled $304 million in the fourth quarter, reflecting a 7.8% improvement year over year. Medicare revenues of $211.5 million rose 3.2% year over year while non-Medicare revenues improved 20.3% to $92.5 million.
Within the Hospice division, net service revenues grossed $108.8 million (up 11.1% year over year), including Medicare revenues of $103.5 million (up 11.7%) and non-Medicare revenues of $5.3 million (up 1.9%).
Additionally, the company integrated two additional operating segments within its business, namely, Personal Care and Corporate. At Personal Care, net service revenues totaled $21.6 million, representing a 19.3% rise from the year-ago number. Meanwhile, the Corporate segment did not register any revenue in the fourth quarter.
Gross margin contracted 30 basis points (bps) to 39.6% in the quarter under review in spite of an 8.4% gain in gross profit. Expense on salaries and benefits rose 6.2% to $84.3 million. Other expenses rose 7.5% to $42.8 million. Adjusted operating income of $45 million in the reported quarter reflects a 13.6% rise from the year-ago tally. Adjusted operating margin expanded 50 bps to 10.4% from a year ago.
Amedisys exited 2018 with cash and cash equivalents of $20.2 million compared with $86.4 million at 2017-end. The company's long-term obligations (excluding current portion) were $5.8 million at the end of 2018 compared with $78.2 million at the end of 2017. Net cash provided by operating activities was $223.5 million in 2018, compared with $105.7 million in 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -6.14% due to these changes.
VGM Scores
At this time, Amedisys has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, 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 #2 (Buy). We expect an above average return from the stock in the next few months.
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Amedisys (AMED) Down 3.5% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Amedisys (AMED - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amedisys due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Amedisys Gains Ground on Solid Home Health Arm in Q4
Amedisys reported adjusted earnings per share (EPS) of 91 cents in the fourth quarter of 2018, up 62.5% from the year-ago 56 cents. The bottom line beat the Zacks Consensus Estimate of 85 cents by 7.1%.
Adjusted EPS in 2018 came in at $3.63, up 64.3% year over year. The figure also surpassed the Zacks Consensus Estimate of $3.58 by 1.4%.
Net service revenues grossed $434.4 million, up 9.1% year over year. Moreover, the top line beat the Zacks Consensus Estimate by 1.9%.
Revenues in 2018 came in at $1.66 billion, up 9.9% year over year. The figure was in line with the Zacks Consensus Estimate.
Quarter in Detail
Within the company's Home Health division, net service revenues totaled $304 million in the fourth quarter, reflecting a 7.8% improvement year over year. Medicare revenues of $211.5 million rose 3.2% year over year while non-Medicare revenues improved 20.3% to $92.5 million.
Within the Hospice division, net service revenues grossed $108.8 million (up 11.1% year over year), including Medicare revenues of $103.5 million (up 11.7%) and non-Medicare revenues of $5.3 million (up 1.9%).
Additionally, the company integrated two additional operating segments within its business, namely, Personal Care and Corporate. At Personal Care, net service revenues totaled $21.6 million, representing a 19.3% rise from the year-ago number. Meanwhile, the Corporate segment did not register any revenue in the fourth quarter.
Gross margin contracted 30 basis points (bps) to 39.6% in the quarter under review in spite of an 8.4% gain in gross profit. Expense on salaries and benefits rose 6.2% to $84.3 million. Other expenses rose 7.5% to $42.8 million. Adjusted operating income of $45 million in the reported quarter reflects a 13.6% rise from the year-ago tally. Adjusted operating margin expanded 50 bps to 10.4% from a year ago.
Amedisys exited 2018 with cash and cash equivalents of $20.2 million compared with $86.4 million at 2017-end. The company's long-term obligations (excluding current portion) were $5.8 million at the end of 2018 compared with $78.2 million at the end of 2017. Net cash provided by operating activities was $223.5 million in 2018, compared with $105.7 million in 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -6.14% due to these changes.
VGM Scores
At this time, Amedisys has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, 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 #2 (Buy). We expect an above average return from the stock in the next few months.