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Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $1.37 in the second quarter of 2023, down 6.8% from the year-ago quarter’s figure. The bottom line surpassed the Zacks Consensus Estimate by 28%.
The quarter’s adjustments include certain acquisition and integration costs, clinical optimization and reorganization costs and executive board of directors/CEO transition awards, among others.
GAAP loss per share in the second quarter was $2.46 compared with the year-ago GAAP EPS of 91 cents.
Net service revenues totaled $552.9 million, down 0.9% year over year. The top line also missed the Zacks Consensus Estimate by 2.5%.
Segments in Detail
In February 2023, Amedisys divested its Personal Care division to HouseWorks, LLC.
Net service revenues from the Home Health Division totaled $349.8 million in the quarter, up 2.3% year over year. Within the segment, Medicare revenues of $219.8 million dropped 0.9% year over year. Non-Medicare revenues increased 8.4% to $130 million. This figure compares with our second quarter’s Home Health model’s projection of $352.1 million.
Within the Hospice Division, net service revenues were $199.2 million (up 0.4% year over year), including Medicare revenues of $188.2 million (up 0.4%) and non-Medicare revenues of $11 million (up 0.9%). The figure compares with our second quarter’s Hospice model’s projection of $194.3 million.
The High Acuity Care segment reported net service revenues of $4 million in the second quarter, surging 48.1% from the year-ago quarter’s figure of $2.7 million. The Corporate segment did not register any recognizable revenues in the second quarter.
Margins
The gross profit for the company improved 5.7% to $255.5 million in the quarter under review. Yet, the gross margin contracted 289 basis points (bps) to 46.2%.
Expenses on salaries and benefits fell 2.1% to $125.1 million. Other expenses rose 42.7% to $78.4 million. The adjusted operating profit amounted to $52.1 million, down 11.7% from the year-ago quarter’s levels. The adjusted operating margin contracted 116 bps to 9.4% from the prior-year quarter’s level.
Liquidity and Cash Position
Amedisys exited the second quarter with cash and cash equivalents of $95.4 million compared with $49.4 million at the end of first-quarter 2023. The company's long-term obligations (excluding the current portion) were $369.9 million at the end of the second quarter compared with $373.2 million at the end of first-quarter 2023.
Cumulative net cash provided by operating activities at the end of the second quarter was $60.8 million compared with $25.9 million a year ago.
Guidance
In light of the pending merger of the Amedisys with UnitedHealth Group Incorporated, the company has decided to suspend guidance on 2023 financial performance.
Our Take
Amedisys ended the second-quarter 2023 on a mixed note with better-than -expected earnings while revenues missed the mark. The company is dealing with the continuous shortage of clinical labor, nursing in particular, has been challenging. Mounting costs and expenses and contraction in margins are other downsides.
Amedisys recently announced that it is going to be acquired by UnitedHealth Group Incorporated unit, Optum, scraping a previous all-stock deal offer from Option Care Health. By combining Optum’s extensive value-based care expertise with Amedisys’ dedication to quality and care innovation in the home and its employees’ patient-first culture, these factors can significantly improve the health outcomes and experiences of more patients at lower costs, resulting in continued growth.
Zacks Rank and Key Picks
Amedisys currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9% You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The stock carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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Amedisys (AMED) Q2 Earnings Beat Estimates, Margins Dip
Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $1.37 in the second quarter of 2023, down 6.8% from the year-ago quarter’s figure. The bottom line surpassed the Zacks Consensus Estimate by 28%.
The quarter’s adjustments include certain acquisition and integration costs, clinical optimization and reorganization costs and executive board of directors/CEO transition awards, among others.
GAAP loss per share in the second quarter was $2.46 compared with the year-ago GAAP EPS of 91 cents.
Net service revenues totaled $552.9 million, down 0.9% year over year. The top line also missed the Zacks Consensus Estimate by 2.5%.
Segments in Detail
In February 2023, Amedisys divested its Personal Care division to HouseWorks, LLC.
Net service revenues from the Home Health Division totaled $349.8 million in the quarter, up 2.3% year over year. Within the segment, Medicare revenues of $219.8 million dropped 0.9% year over year. Non-Medicare revenues increased 8.4% to $130 million. This figure compares with our second quarter’s Home Health model’s projection of $352.1 million.
Within the Hospice Division, net service revenues were $199.2 million (up 0.4% year over year), including Medicare revenues of $188.2 million (up 0.4%) and non-Medicare revenues of $11 million (up 0.9%). The figure compares with our second quarter’s Hospice model’s projection of $194.3 million.
The High Acuity Care segment reported net service revenues of $4 million in the second quarter, surging 48.1% from the year-ago quarter’s figure of $2.7 million. The Corporate segment did not register any recognizable revenues in the second quarter.
Margins
The gross profit for the company improved 5.7% to $255.5 million in the quarter under review. Yet, the gross margin contracted 289 basis points (bps) to 46.2%.
Expenses on salaries and benefits fell 2.1% to $125.1 million. Other expenses rose 42.7% to $78.4 million. The adjusted operating profit amounted to $52.1 million, down 11.7% from the year-ago quarter’s levels. The adjusted operating margin contracted 116 bps to 9.4% from the prior-year quarter’s level.
Liquidity and Cash Position
Amedisys exited the second quarter with cash and cash equivalents of $95.4 million compared with $49.4 million at the end of first-quarter 2023. The company's long-term obligations (excluding the current portion) were $369.9 million at the end of the second quarter compared with $373.2 million at the end of first-quarter 2023.
Amedisys, Inc. Price, Consensus and EPS Surprise
Amedisys, Inc. price-consensus-eps-surprise-chart | Amedisys, Inc. Quote
Cumulative net cash provided by operating activities at the end of the second quarter was $60.8 million compared with $25.9 million a year ago.
Guidance
In light of the pending merger of the Amedisys with UnitedHealth Group Incorporated, the company has decided to suspend guidance on 2023 financial performance.
Our Take
Amedisys ended the second-quarter 2023 on a mixed note with better-than -expected earnings while revenues missed the mark. The company is dealing with the continuous shortage of clinical labor, nursing in particular, has been challenging. Mounting costs and expenses and contraction in margins are other downsides.
Amedisys recently announced that it is going to be acquired by UnitedHealth Group Incorporated unit, Optum, scraping a previous all-stock deal offer from Option Care Health. By combining Optum’s extensive value-based care expertise with Amedisys’ dedication to quality and care innovation in the home and its employees’ patient-first culture, these factors can significantly improve the health outcomes and experiences of more patients at lower costs, resulting in continued growth.
Zacks Rank and Key Picks
Amedisys currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9% You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The stock carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.