Amedisys, Inc. ( AMED Quick Quote AMED - Free Report) reported adjusted earnings per share (EPS) of $1.53 for third-quarter 2021, down 31.7% from the year-ago figure. The bottom line, however, beat the Zacks Consensus Estimate by 12.5%. 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 third quarter was $1.37, down 36.6% compared with the year-ago $2.16. Net service revenues grossed $553.5 million, up 1.7% year over year. The top line missed the Zacks Consensus Estimate by 2.7%. Segment in Detail Within the Home Health division, net service revenues totaled $338.6 million in the quarter, reflecting a 3.9% rise year over year. Within this segment, Medicare revenues of $228.2 million improved 2.7% year over year. Non-Medicare revenues increased 6.4% to $110.4 million. Within the Hospice division, net service revenues were $197.5 million (down 1.1% year over year), including Medicare revenues of $187.8 million (down 0.6%) and non-Medicare revenues of $9.7 million (down 9.3%). At Personal Care, net service revenues totaled $15.9 million, reflecting a decline of 13.6% from the year-ago number. The High Acuity Care segment reported net service revenues of 1.5 million in the third quarter. The Corporate segment did not register any recognizable revenues in the third quarter. Margins Gross profit for the company declined 1.3% to $243.2 million in the quarter under review. Gross margin contracted 135 basis points (bps) to 43.9%. Expenses on salaries and benefits fell 3.1% to $119.4 million. Other expenses rose 11.8% to $55.2 million. Adjusted operating profit of $68.7 million reflected a 7.1% decline from the year-ago quarter. Adjusted operating margin contracted 118 bps to 12.4% from the prior-year level. Liquidity and Cash Position Amedisys exited the third quarter of 2021 with cash and cash equivalents of $124.5 million compared with $91.7 million at the end of second-quarter 2021. The company's long-term obligations (excluding the current portion) were $434.8 million at the end of the third quarter compared with $179.4 million at the end of the last reported quarter. Cumulative net cash provided by operating activities at the end of the third quarter was $61.8 million compared with $83.1 million a year ago. 2021 Guidance Amedisys updated its outlook for 2021 for both core Amedisys and Contessa business, taking into account the rapidly-changing business environment posed by the COVID-19 pandemic, future regulations or government interventions, reduction in elective procedures, change in patient behavior and further decline in senior living occupancy and other issues that can potentially impact the company’s core business. For 2021, the company anticipates net service revenues in the range of $2.200 billion to $2.205 billion, a drop from the earlier guidance of $2.230-$2.245. Adjusted earnings per share are projected in the range of $5.88-$5.93, a decline from the prior guidance of $6.37-$6.49. The Zacks Consensus Estimate for 2021 revenues is pegged at $2.25 billion. The Zacks Consensus Estimate for adjusted earnings per share is pegged at $6.09. Our Take Amedisys ended the third quarter on a mixed note with better-than-expected earnings and a revenue miss. The Home Health division drove the top line in the reported quarter on growth in Medicare and Non-Medicare revenues. The recently-concluded Contessa Health buyout buoys optimism for the company. However, year-over-year decline in Hospice and Personal Care revenues is an added disadvantage. Further, the contraction of both margins does not bode well. The reduction in full-year guidance is concerning as well. 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 Thermo Fisher Scientific Inc. ( TMO Quick Quote TMO - Free Report) , SARTORIUS ( SARTF Quick Quote SARTF - Free Report) and West Pharmaceutical Services, Inc. ( WST Quick Quote WST - Free Report) . Thermo Fisher, carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Revenues of $9.33 billion outpaced the consensus mark by 12%. You can see the complete list of today’s Zacks #1 Rank stocks here. SARTORIUS reported third-quarter 2021 adjusted EPS of $2.55, surpassing the Zacks Consensus Estimate by 7.6%. Revenues of $1.06 billion surpassed the Zacks Consensus Estimate by 5.2%. It currently carries a Zacks Rank #2 (Buy). West Pharmaceutical reported third-quarter 2021 adjusted EPS of $2.06, which surpassed the Zacks Consensus Estimate by 13.2%. Revenues of $706.5 million outpaced the Zacks Consensus Estimate by 3.2%. It currently carries a Zacks Rank #2.