Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $297.1 million, an increase of 7.5% compared to $276.4 million in Q4 2023 [20] - Adjusted earnings per share for Q4 2024 was $1.38, up 4.6% from $1.32 in Q4 2023 [20] - Adjusted EBITDA for Q4 2024 was $37.8 million, a 10.3% increase from $34.3 million in Q4 2023 [20] - For the full year 2024, total revenue was $1.2 billion, a 9.1% increase from $1.1 billion in 2023 [21] - Adjusted EBITDA for 2024 was $140.3 million, up 15.9% from $121 million in 2023 [21] Business Line Data and Key Metrics Changes - Personal care revenues for Q4 2024 were $216.9 million, accounting for 73.8% of total revenue [52] - Hospice care revenues were $59 million, representing 20.1% of total revenue [52] - Home health revenues were $17.8 million, making up 6.1% of total revenue [52] - Same store revenue growth for personal care was 5.8% in Q4 2024 compared to Q4 2023 [35] - Hospice same store revenue increased by 7.8% year-over-year [37] - Home health segment returned to positive growth with a 1.6% increase compared to Q4 2023 [39] Market Data and Key Metrics Changes - Illinois enacted a 5.5% rate increase for personal care services effective January 1, 2025, expected to contribute approximately $23 million in annualized revenue [34][47] - The company experienced solid caregiver hiring success, with personal care hiring at 76 hires per day, up from 74 hires per day in Q4 2023 [30] Company Strategy and Development Direction - The company is focused on expanding services related to home care, which is seen as valuable to both states and Congress [18] - The Gentiva acquisition is a significant part of the growth strategy, adding approximately $280 million in annualized revenues [50] - The company aims for a targeted minimum annual revenue growth of 10% despite the larger revenue base [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the potential impact of Medicaid program changes, believing that their services reduce overall costs to state Medicaid programs [16][19] - The company is well-positioned to handle potential changes in Medicaid funding due to its low-cost provider status [99] - Management anticipates continued growth in personal care services, aiming for a revenue increase of 3% to 5% in 2025 [72] Other Important Information - The company had cash on hand of approximately $100 million as of the end of 2024 [22] - A one-time write-off of approximately $4.9 million was taken in Q4 2024 related to excess corporate office space [29] - The company maintains a conservative leverage position at just under one times Adjusted EBITDA, allowing flexibility for strategic acquisitions [23] Q&A Session Summary Question: Average revenue per hour in Q4 and its impact - The average revenue per hour is expected to be slightly down due to the Gentiva deal and the lower reimbursement rate in Texas [67] Question: Organic volume growth in personal care - Organic volume growth in personal care was slightly up, with expectations to reach the higher end of the 3% to 5% growth range in 2025 [72][74] Question: Impact of work requirements on business - The majority of clients served are elderly and disabled, so work requirements would have negligible direct effects, potentially increasing caregiver availability [83] Question: Integration of Gentiva and its impact on cash flow - The integration of Gentiva is progressing smoothly, with no significant impact on cash flow conversion expected [119] Question: Expected margin decline from Q4 to Q1 - A 200 basis point margin decline is anticipated, primarily due to the mix shift from Gentiva and annual resets of payroll taxes [54][109]

Core Insights - Addus HomeCare (ADUS) reported revenue of $297.14 million for the quarter ended December 2024, reflecting a year-over-year increase of 7.5% and a surprise of +1.71% over the Zacks Consensus Estimate of $292.16 million [1] - The company's EPS for the quarter was $1.38, which is an increase from $1.32 in the same quarter last year, aligning with the consensus EPS estimate [1] Revenue Breakdown - Personal Care revenue reached $220.33 million, exceeding the average estimate of $203.82 million by two analysts, representing a year-over-year change of +7.7% [4] - Home Health revenue was reported at $17.83 million, slightly above the average estimate of $17.29 million, marking a +4.1% year-over-year increase [4] - Hospice revenue totaled $58.99 million, surpassing the estimated $58.01 million, with a year-over-year change of +7.8% [4] Stock Performance - Over the past month, Addus HomeCare shares have returned -16.4%, compared to a -0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Core Insights - Addus HomeCare (ADUS) reported quarterly earnings of $1.38 per share, matching the Zacks Consensus Estimate and showing an increase from $1.32 per share a year ago [1] - The company achieved revenues of $297.14 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.71% and up from $276.35 million year-over-year [2] - Addus HomeCare has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates four times in the same period [2] Earnings Performance - The company had a surprise of 0.78% in the previous quarter, with actual earnings of $1.30 per share against an expected $1.29 [1] - The current consensus EPS estimate for the upcoming quarter is $1.34, with projected revenues of $349.36 million, and for the current fiscal year, the estimate is $6 on $1.42 billion in revenues [7] Market Position - Addus HomeCare shares have underperformed the market, losing about 12.9% since the beginning of the year, while the S&P 500 has gained 2.2% [3] - The company currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Industry Outlook - The Medical - Outpatient and Home Healthcare industry, to which Addus HomeCare belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net service revenues for Q4 2024 were $297.1 million, a 7.5% increase from $276.4 million in Q4 2023[4] - Net income for Q4 2024 was $19.5 million, with diluted earnings per share of $1.07, compared to $19.6 million and $1.20 per share in Q4 2023[4] - Adjusted EBITDA for Q4 2024 increased by 10.3% to $37.8 million from $34.3 million in Q4 2023[4] - The full year 2024 net service revenues reached $1.15 billion, a 9.1% increase from $1.06 billion in 2023[4] - Adjusted net income for the full year 2024 was $91.4 million, up from $74.8 million in 2023, with adjusted net income per diluted share increasing to $5.26 from $4.58[4] - Net income for the twelve months ended December 31, 2024, was $73.6 million, up from $62.5 million in 2023, representing a 17.0% increase[25] - Operating income for the twelve months ended December 31, 2024, was $102.7 million, compared to $91.0 million in 2023, marking a 12.5% increase[26] - For the three months ended December 31, 2024, net income was $19,526,000 compared to $19,578,000 for the same period in 2023, while for the twelve months, net income increased to $73,598,000 from $62,516,000[32] - Adjusted EBITDA for the three months ended December 31, 2024, was $37,771,000, up from $34,255,000 in the same period of 2023, and for the twelve months, it rose to $140,290,000 from $121,020,000[32] Revenue Breakdown - Personal care services accounted for 74.1% of total revenue in Q4 2024, with an organic revenue growth rate of 5.8% year-over-year[6] - Hospice services represented 19.9% of total revenue in Q4 2024, with organic revenue growth of 7.8% compared to the previous year[9] - Personal Care segment revenues increased to $220.3 million in Q4 2024, a 7.9% rise from $204.5 million in Q4 2023[27] - Hospice segment revenues grew by 7.5% to $58.9 million in Q4 2024, compared to $54.7 million in Q4 2023[27] Assets and Equity - Total assets increased to $1.41 billion as of December 31, 2024, from $1.02 billion in 2023, reflecting a 37.9% growth[25] - Total stockholders' equity rose to $970.5 million in 2024, up from $706.7 million in 2023, indicating a 37.4% increase[25] Cash and Liquidity - Cash and liquidity as of December 31, 2024, included $98.9 million in cash and $223.0 million in bank debt, with a revolving credit facility capacity of $577.7 million[10] - Cash at the end of Q4 2024 was $98.9 million, up from $64.8 million at the end of Q4 2023[25] Acquisitions and Growth Strategy - The acquisition of Gentiva personal care operations added approximately $280 million in annualized revenues and expanded market coverage in seven states[11] - The company anticipates additional acquisition opportunities in 2025, focusing on markets that align with its strategic growth initiatives[12] Operational Metrics - Revenue per billable hour for the three months ended December 31, 2024, was $26.40, slightly down from $26.53 in the same period of 2023[32] - Organic revenue growth for Personal Care was 5.8% for the three months ended December 31, 2024, compared to 11.2% in the same period of 2023[32] - Average daily census for Hospice increased to 3,472 in the three months ended December 31, 2024, compared to 3,381 in the same period of 2023[32] - Total patient days for Hospice reached 319,460 for the three months ended December 31, 2024, up from 311,015 in the same period of 2023[32] - New admissions in Home Health were 4,365 for the three months ended December 31, 2024, compared to 4,654 in the same period of 2023[32] - The average billable census for acquisitions was 14,581 for the three months ended December 31, 2024, with no prior year comparison available[32] - The percentage of revenues from state, local, and other governmental programs in Personal Care increased to 54.2% for the three months ended December 31, 2024, from 50.5% in the same period of 2023[32] Adjusted Financial Metrics - Adjusted EBITDA is defined as earnings before net interest expense, taxes, depreciation, and other non-recurring costs, providing insight into the company's operating performance[1] - Adjusted Net Income excludes acquisition expenses and other non-recurring costs, offering a clearer view of the company's profitability[2] - Adjusted diluted earnings per share is calculated by adjusting for acquisition expenses and other non-recurring costs, reflecting the company's earnings more accurately[3] - Adjusted net service revenues are revenue figures adjusted for the closure of certain sites, highlighting the impact of operational changes on revenue[4]

Core Viewpoint - Addus HomeCare (ADUS) has experienced significant selling pressure, resulting in a 16.4% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Stock Performance and Technical Indicators - ADUS is currently in oversold territory, indicated by an RSI reading of 26.62, suggesting a potential reversal in stock price trends [5] - The Relative Strength Index (RSI) is a momentum oscillator that helps identify oversold conditions when the reading falls below 30 [2][3] Group 2: Earnings Estimates and Analyst Sentiment - Over the last 30 days, the consensus EPS estimate for ADUS has increased by 0.6%, indicating a positive trend in earnings revisions [6] - ADUS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns. However, identifying such stocks can be challenging due to the inherent risks and volatility associated with them [1]. Group 1: Company Overview - Addus HomeCare (ADUS) is highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2]. - The company specializes in home-based personal care, nursing, and rehabilitative therapy services, making it a strong candidate for growth investment [3]. Group 2: Earnings Growth - Addus HomeCare has a historical EPS growth rate of 15.6%, with projected EPS growth of 14.7% for the current year, surpassing the industry average of 11.2% [5]. - Earnings growth is emphasized as a critical factor for investors, with double-digit growth being particularly desirable [4]. Group 3: Cash Flow Growth - The company exhibits a year-over-year cash flow growth rate of 21.9%, significantly higher than the industry average of 2.3% [6]. - Over the past 3-5 years, Addus HomeCare has maintained an annualized cash flow growth rate of 22%, compared to the industry average of 8.5% [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Addus HomeCare, with the Zacks Consensus Estimate for the current year increasing by 0.6% over the past month [9]. - The correlation between earnings estimate revisions and near-term stock price movements is noted as a significant indicator of performance [8]. Group 5: Investment Positioning - Addus HomeCare holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [11].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Addus HomeCare (ADUS) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][8]. Company Analysis - Addus HomeCare (ADUS) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The Forward P/E ratio of ADUS is 18.72, which is lower than the industry average of 20.99, suggesting it may be undervalued [4]. - ADUS's Forward P/E has fluctuated between 18.17 and 24.54 over the past year, with a median of 22.07 [4]. - The PEG ratio for ADUS is 1.29, significantly lower than the industry average of 2.43, indicating a favorable valuation relative to expected earnings growth [5]. - The P/B ratio for ADUS is 2.17, compared to the industry average of 4, further supporting the notion of undervaluation [6]. - ADUS has a P/CF ratio of 23.44, which is also lower than the industry average of 25.69, suggesting solid cash flow relative to its market value [7]. Investment Outlook - The combination of these metrics indicates that Addus HomeCare is likely undervalued, making it an attractive option for value investors [8].

Core Insights - The article emphasizes the importance of a thorough financial analysis, particularly focusing on the interest coverage ratio, to make informed investment decisions in a volatile stock market [1][2]. Interest Coverage Ratio - The interest coverage ratio is a critical metric that indicates how effectively a company can pay interest on its debt, calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense [4][5]. - A higher interest coverage ratio suggests a company is more capable of meeting its financial obligations, while a ratio below 1 indicates potential default risks [6][7]. Company Performance - Deckers Outdoor Corporation (DECK), Boot Barn Holdings, Inc. (BOOT), Addus HomeCare Corporation (ADUS), and The Ensign Group, Inc. (ENSG) are highlighted for their strong interest coverage ratios, indicating solid financial health [3]. - Deckers has a Zacks Rank of 1, with projected sales growth of 15.6% and EPS growth of 21.2% for the current financial year, alongside an 8.7% stock price increase over the past year [11][12]. - Boot Barn also holds a Zacks Rank of 1, with expected sales growth of 14.9% and EPS growth of 21.4%, and a significant stock price increase of 54.1% in the past year [13]. - Addus HomeCare has a Zacks Rank of 2, with projected sales growth of 8.6% and EPS growth of 14.4%, and a stock price increase of 24% over the past year [14]. - The Ensign Group, also with a Zacks Rank of 2, anticipates sales growth of 14.3% and EPS growth of 10.6%, with a stock price rise of 5.6% in the past year [15]. Investment Strategy - A successful investment strategy should include companies with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B [8][9]. - Additional criteria for stock selection include a minimum stock price of $5, strong historical and projected EPS growth, substantial trading volume, and a favorable Zacks Rank [10].

Core Insights - Addus HomeCare (ADUS) is expected to report quarterly earnings of $1.38 per share, reflecting a 4.6% increase year-over-year [1] - Analysts forecast revenues of $292.16 million, indicating a 5.7% year-over-year growth [1] Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.6% over the past 30 days, showing analysts' reappraisal of their projections [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock [3] Revenue Breakdown - Analysts estimate 'Revenue- Personal care' at $203.82 million, a slight decline of 0.3% year-over-year [5] - 'Revenue- Home Health' is projected to reach $17.29 million, reflecting a 1% increase year-over-year [5] - 'Revenue- Hospice' is expected to be $58.01 million, indicating a 6% year-over-year growth [5] Stock Performance - Shares of Addus HomeCare have decreased by 15.4% in the past month, contrasting with a 4.7% increase in the Zacks S&P 500 composite [5] - With a Zacks Rank 2 (Buy), ADUS is anticipated to outperform the overall market in the near future [5]

Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Has Addus HomeCare (ADUS) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.Addus HomeCare is a member of the Medical sector. This group includes 1010 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different groups, ...