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Amedisys (AMED) to Report Q1 Earnings: What's in Store?

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Amedisys, Inc. (AMED - Free Report) is scheduled to report first-quarter 2021 results on Apr 28, after the closing bell.

In the last-reported quarter, the company reported earnings surprise of 2.76%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 39.25%.

Let’s see how things have shaped up prior to this announcement.

Factors at Play

In Home Health, just like the earlier quarter, the company’s total admission and total volumes are expected to have improved in the first quarter, indicating business recovery from the initial impact of COVID-19. The company’s continued focus on Quality of Care (Stars and Acute Care Hospitalization rates) is likely to have positively impacted growth in first-quarter 2021.

However, massive COVID resurgence through the months of the first quarter might have impeded the pace of this recovery.

Within the Hospice Segment, strong contributions from the acquisitions of Asana and AseraCare are expected to have positively impacted the top line in the first quarter. In this regard, during the fourth-quarter earnings call, Amedisys noted that its 2021 personal care network revenues will double as compared to the 2020 figure generated through care coordination with home health and hospice segments. This should get reflected in first-quarter results itself.

Amedisys, Inc. Price and EPS Surprise

 

Added to this, during the fourth-quarter earnings release, the company noted that it is well-positioned to take advantage of COVID-accelerated trends of “doing more for more” in the home with the development of a SNF-at-home product solutions and integration of telehealth. The development is likely to have contributed to the top line in the first quarter. Furthermore, collaboration with Option Health Care to provide COVID antibody infusion therapy within skilled nursing and assisted living facilities in January 2021 is likely to have contributed to Amedisys first-quarter 2021 top-line growth.

The Estimate Picture

For first-quarter 2021, the Zacks Consensus Estimate for total revenues of $546.7 billion implies a rise of 11.2% from the prior-year reported figure.

The consensus estimate for earnings per share is pegged at $1.43, implying an improvement of 36.2% from the prior-year reported figure.

Earnings Whispers   

Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has higher chances of beating estimates. However, this is not the case here as you can see.

Earnings ESP: Amedisys has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #3.

Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.

Elanco Animal Health Incorporated (ELAN - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +1.90%. You can see the complete list of today’s Zacks #1 Rank stocks here.

HCA Healthcare, Inc. (HCA - Free Report) has an Earnings ESP of +8.91% and a Zacks Rank of 2, at present.

Avenue Therapeutics, Inc. (ATXI - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank of 2, at present.

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