Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) 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 EPS 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%).
Amedisys, Inc. Price, Consensus and EPS Surprise
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.
Our Take
Amid the coronavirus-led volume disruption across the United States, Amedisys ended the fourth 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. The company announced financial guidance for 2021, projecting year-over-year growth in revenues and earnings. However, an increase in expenses compared to the prior year is a concern.
Zacks Rank and Key Picks
Amedisys currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that have already announced their quarterly results are Abbott Laboratories (ABT - Free Report) , AngioDynamics, Inc. (ANGO - Free Report) and Hill-Rom Holdings, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Worldwide sales of $10.7 billion in the quarter outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny against the Zacks Consensus Estimate of a loss per share of 2 cents. Revenues of $72.8 million beat the consensus mark by 8%.
Hill-Rom reported first-quarter fiscal 2021 adjusted EPS of $1.53, beating the Zacks Consensus Estimate by 45.7%. Revenues of $741.1 million surpassed the consensus mark by 13.2%.
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Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) 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 EPS 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%).
Amedisys, Inc. Price, Consensus and EPS Surprise
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.
Our Take
Amid the coronavirus-led volume disruption across the United States, Amedisys ended the fourth 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. The company announced financial guidance for 2021, projecting year-over-year growth in revenues and earnings. However, an increase in expenses compared to the prior year is a concern.
Zacks Rank and Key Picks
Amedisys currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that have already announced their quarterly results are Abbott Laboratories (ABT - Free Report) , AngioDynamics, Inc. (ANGO - Free Report) and Hill-Rom Holdings, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Worldwide sales of $10.7 billion in the quarter outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny against the Zacks Consensus Estimate of a loss per share of 2 cents. Revenues of $72.8 million beat the consensus mark by 8%.
Hill-Rom reported first-quarter fiscal 2021 adjusted EPS of $1.53, beating the Zacks Consensus Estimate by 45.7%. Revenues of $741.1 million surpassed the consensus mark by 13.2%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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