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Why Is Amedisys (AMED) Up 13.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Amedisys (AMED - Free Report) . Shares have added about 13.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Amedisys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Amedisys Q4 Earnings Top Estimates, Margins Decline
Amedisys, Inc. reported adjusted earnings per share of $1.18 for fourth-quarter 2021, down 20.8% from the year-ago figure. The bottom line, however, beat the Zacks Consensus Estimate by 0.9%.
The quarter’s adjustments include contingency accrual, certain COVID-related costs as well as benefits from CARES Act & State COVID-19 grants.
GAAP earnings per share for the fourth quarter was $1.04, down 23.5% compared with the year-ago $1.36.
Net service revenues grossed $559.3 million, up 1.6% year over year. The top line beat the Zacks Consensus Estimate by 0.7%.
2021 at a Glance
Adjusted earnings per share for the year was $5.95, down 2.6% from the 2020 levels. The figure also beat the consensus mark by 0.3%.
Full-year 2021 net service revenues totaled $2.21 billion, which improved 6.9% from the previous year. Further, the top line surpassed the Zacks Consensus Estimate by 0.5%.
Segment in Detail
Within the Home Health division, net service revenues totaled $337.3 million in the quarter, reflecting a 2.4% rise year over year. Within this segment, Medicare revenues of $230.1 million improved 0.8% year over year. Non-Medicare revenues increased 6% to $107.2 million.
Within the Hospice division, net service revenues were $204.9 million (up 0.5% year over year), including Medicare revenues of $193.9 million (up 0.2%) and non-Medicare revenues of $11 million (up 5.8%).
At Personal Care, net service revenues totaled $15.1 million, reflecting a decline of 13.2% from the year-ago number. The High Acuity Care segment reported net service revenues of $2 million in the fourth quarter. The Corporate segment did not register any recognizable revenue in the fourth quarter.
Margins
Gross profit for the company declined 0.7% to $242.1 million in the quarter under review. Gross margin contracted 101 basis points (bps) to 43.3%.
Expenses on salaries and benefits rose 5.1% to $125.2 million. Other expenses rose 8.5% to $53.7 million. Adjusted operating profit of $63.2 million reflected a 16.1% decline from the year-ago quarter. Adjusted operating margin contracted 237 bps to 11.3% from the prior-year level.
Liquidity and Cash Position
Amedisys exited 2021 with cash and cash equivalents of $42.7 million compared with $81.8 million at 2020-end. The company's long-term obligations (excluding the current portion) were $432.1 million at the end of 2021, compared with $204.5 million at the end of 2020.
Cumulative net cash provided by operating activities at the end of 2021 was $188.9 million compared with $288.9 million a year ago.
2022 Guidance
Amedisys announced its outlook for 2022.
For full-year 2022, the company anticipates net service revenues in the range of $2.330 billion to $2.365 billion. The Zacks Consensus Estimate for 2022 revenues is pegged at $2.36 billion.
Adjusted EPS is projected in the range of $5.23-$5.45. The Zacks Consensus Estimate for the same is pegged at $5.80.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -8.15% due to these changes.
VGM Scores
At this time, Amedisys has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. It's no surprise Amedisys has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Amedisys (AMED) Up 13.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Amedisys (AMED - Free Report) . Shares have added about 13.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Amedisys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Amedisys Q4 Earnings Top Estimates, Margins Decline
Amedisys, Inc. reported adjusted earnings per share of $1.18 for fourth-quarter 2021, down 20.8% from the year-ago figure. The bottom line, however, beat the Zacks Consensus Estimate by 0.9%.
The quarter’s adjustments include contingency accrual, certain COVID-related costs as well as benefits from CARES Act & State COVID-19 grants.
GAAP earnings per share for the fourth quarter was $1.04, down 23.5% compared with the year-ago $1.36.
Net service revenues grossed $559.3 million, up 1.6% year over year. The top line beat the Zacks Consensus Estimate by 0.7%.
2021 at a Glance
Adjusted earnings per share for the year was $5.95, down 2.6% from the 2020 levels. The figure also beat the consensus mark by 0.3%.
Full-year 2021 net service revenues totaled $2.21 billion, which improved 6.9% from the previous year. Further, the top line surpassed the Zacks Consensus Estimate by 0.5%.
Segment in Detail
Within the Home Health division, net service revenues totaled $337.3 million in the quarter, reflecting a 2.4% rise year over year. Within this segment, Medicare revenues of $230.1 million improved 0.8% year over year. Non-Medicare revenues increased 6% to $107.2 million.
Within the Hospice division, net service revenues were $204.9 million (up 0.5% year over year), including Medicare revenues of $193.9 million (up 0.2%) and non-Medicare revenues of $11 million (up 5.8%).
At Personal Care, net service revenues totaled $15.1 million, reflecting a decline of 13.2% from the year-ago number. The High Acuity Care segment reported net service revenues of $2 million in the fourth quarter. The Corporate segment did not register any recognizable revenue in the fourth quarter.
Margins
Gross profit for the company declined 0.7% to $242.1 million in the quarter under review. Gross margin contracted 101 basis points (bps) to 43.3%.
Expenses on salaries and benefits rose 5.1% to $125.2 million. Other expenses rose 8.5% to $53.7 million. Adjusted operating profit of $63.2 million reflected a 16.1% decline from the year-ago quarter. Adjusted operating margin contracted 237 bps to 11.3% from the prior-year level.
Liquidity and Cash Position
Amedisys exited 2021 with cash and cash equivalents of $42.7 million compared with $81.8 million at 2020-end. The company's long-term obligations (excluding the current portion) were $432.1 million at the end of 2021, compared with $204.5 million at the end of 2020.
Cumulative net cash provided by operating activities at the end of 2021 was $188.9 million compared with $288.9 million a year ago.
2022 Guidance
Amedisys announced its outlook for 2022.
For full-year 2022, the company anticipates net service revenues in the range of $2.330 billion to $2.365 billion. The Zacks Consensus Estimate for 2022 revenues is pegged at $2.36 billion.
Adjusted EPS is projected in the range of $5.23-$5.45. The Zacks Consensus Estimate for the same is pegged at $5.80.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -8.15% due to these changes.
VGM Scores
At this time, Amedisys has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. It's no surprise Amedisys has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.