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Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $1.05 for first-quarter 2020, down 5.4% from the year-ago figure. The bottom line however beat the Zacks Consensus Estimate by 8.3%.
Net service revenues grossed $491.7 million, up 5.2% year over year. However, the top line missed the Zacks Consensus Estimate by 4%.
Quarter in Detail
Within the company's Home Health division, net service revenues totaled $303.6 million in the quarter, reflecting 2.1% decline year over year. Moreover, Medicare revenues of $203.9 million dropped 4.5% year over year. Non-Medicare revenues improved 3.1% to $99.7 million.
Within the Hospice division, net service revenues were $169.4 million (up 23.6% year over year) including Medicare revenues of $160.5 million (up 22.8%) and non-Medicare revenues of $8.9 million (up 41.3%).
The company recently integrated two additional operating segments within its business, namely, Personal Care and Corporate. At Personal Care, net service revenues totaled $18.7 million, representing a decline of 7.4% from the year-ago number. Meanwhile, the Corporate segment did not register any revenues in the first quarter.
Margins
Gross margin expanded 79 basis points (bps) to 41.9% in the quarter under review. Further, expense on salaries and benefits rose 7.1% to $101.6 million. Other expenses increased 13.5% to $49.3 million as well. Operating profit of $55.1 million reflected a 2.4% rise from the year-ago figure. Operating margin, however, contracted 31 bps to 11.2% from the prior-year level.
Cash Position
Amedisys exited the quarter with cash and cash equivalents of $174.7 million compared with $20.2 million at the end of 2019. The company's long-term obligations (excluding current portion) were $379.9 million at the end of the first quarter compared with $232.3 million in the year-ago quarter.
At the end of the first quarter, net cash provided by operating activities was $6 million compared with $20.1 million a year ago.
2020 Guidance
Given the rapidly changing operating conditions related to the coronavirus outbreak Amedisys is currently unable to gauge the magnitude of the impact on its annual financial results. Hence, the company has decided to withdraw its full-year 2020 guidance.
Our Take
Amid coronavirus-led volume disruption across the United States, Amedisys ended the first quarter on a mixed note with earnings beat and revenues miss. The company noted that on the one hand, while COVID-19 impacted its volumes and costs beginning the second half of March, on the other hand, it strengthened the medium and long-term value proposition of each of the company’s lines of business.Escalating expenses are a concern.
Zacks Rank
Currently, Amedisys carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Amedisys (AMED) Q1 Earnings Beat, Operating Margin Falls
Amedisys, Inc. (AMED - Free Report) reported adjusted earnings per share (EPS) of $1.05 for first-quarter 2020, down 5.4% from the year-ago figure. The bottom line however beat the Zacks Consensus Estimate by 8.3%.
Net service revenues grossed $491.7 million, up 5.2% year over year. However, the top line missed the Zacks Consensus Estimate by 4%.
Quarter in Detail
Within the company's Home Health division, net service revenues totaled $303.6 million in the quarter, reflecting 2.1% decline year over year. Moreover, Medicare revenues of $203.9 million dropped 4.5% year over year. Non-Medicare revenues improved 3.1% to $99.7 million.
Within the Hospice division, net service revenues were $169.4 million (up 23.6% year over year) including Medicare revenues of $160.5 million (up 22.8%) and non-Medicare revenues of $8.9 million (up 41.3%).
Amedisys Inc Price, Consensus and EPS Surprise
Amedisys Inc price-consensus-eps-surprise-chart | Amedisys Inc Quote
The company recently integrated two additional operating segments within its business, namely, Personal Care and Corporate. At Personal Care, net service revenues totaled $18.7 million, representing a decline of 7.4% from the year-ago number. Meanwhile, the Corporate segment did not register any revenues in the first quarter.
Margins
Gross margin expanded 79 basis points (bps) to 41.9% in the quarter under review. Further, expense on salaries and benefits rose 7.1% to $101.6 million. Other expenses increased 13.5% to $49.3 million as well. Operating profit of $55.1 million reflected a 2.4% rise from the year-ago figure. Operating margin, however, contracted 31 bps to 11.2% from the prior-year level.
Cash Position
Amedisys exited the quarter with cash and cash equivalents of $174.7 million compared with $20.2 million at the end of 2019. The company's long-term obligations (excluding current portion) were $379.9 million at the end of the first quarter compared with $232.3 million in the year-ago quarter.
At the end of the first quarter, net cash provided by operating activities was $6 million compared with $20.1 million a year ago.
2020 Guidance
Given the rapidly changing operating conditions related to the coronavirus outbreak Amedisys is currently unable to gauge the magnitude of the impact on its annual financial results. Hence, the company has decided to withdraw its full-year 2020 guidance.
Our Take
Amid coronavirus-led volume disruption across the United States, Amedisys ended the first quarter on a mixed note with earnings beat and revenues miss. The company noted that on the one hand, while COVID-19 impacted its volumes and costs beginning the second half of March, on the other hand, it strengthened the medium and long-term value proposition of each of the company’s lines of business.Escalating expenses are a concern.
Zacks Rank
Currently, Amedisys carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are Aphria Inc. , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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