Group 1 - The article emphasizes a technical focus on fundamental value drivers of business economics to identify high probability long-term investment opportunities [1] - The company aims to buy securities at prices that are appropriate relative to their intrinsic worth, indicating a value investing strategy [1] - Research covers a wide range of financial markets, including investment securities and futures & options markets, catering to various market participants [1] Group 2 - The analyst discloses no current stock or derivative positions in the companies mentioned, ensuring an unbiased perspective [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [2] - Seeking Alpha clarifies that past performance does not guarantee future results, highlighting the importance of individual due diligence [3]

Company Overview - Amedisys Inc. provides home health and hospice services across the U.S., catering to the growing chronic, co-morbid, and aging population [13] - The company offers clinically focused programs for chronic conditions such as diabetes and coronary artery disease, along with various rehabilitative programs [13] Zacks Rank and Style Scores - Amedisys holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a strong overall rating [14] - The Value Style Score for Amedisys is B, supported by attractive valuation metrics, including a forward P/E ratio of 19.74 [14] - Recent upward revisions in earnings estimates by three analysts have increased the Zacks Consensus Estimate by $0.09 to $5.00 per share for fiscal 2025 [14] Investment Potential - Amedisys is highlighted as a stock to watch due to its solid Zacks Rank and top-tier Value and VGM Style Scores, making it a candidate for investors' short lists [15]

Core Insights - Amedisys reported strong quarterly earnings, exceeding market expectations for both revenue and adjusted profitability despite merger-related costs impacting GAAP results [1][5] - GAAP revenue reached $621.9 million, surpassing the consensus estimate of $611.99 million, while Non-GAAP EPS was $1.54, exceeding the forecast of $1.36 [1][2] Financial Performance - GAAP revenue grew by 5.2% year-over-year from $591.2 million in Q2 2024 [2][5] - Adjusted EBITDA increased by 10.4% compared to Q2 2024, indicating improved operational efficiency [2][5] - Non-GAAP net income rose to $51.4 million from $43.5 million in Q2 2024, reflecting strong core operations [5] - GAAP net income fell to $28.1 million, a decrease of 13% from $32.3 million in Q2 2024, primarily due to $26.3 million in merger-related expenses [2][6] Operational Highlights - Amedisys operates a national network of 519 care centers, serving nearly half a million patients annually across 38 states and Washington, D.C. [3] - The company focuses on regulatory compliance, high-quality clinical care, and strategic partnerships, with approximately 70-74% of revenue derived from Medicare [4] - The average home health quality rating is 4.18 out of 5 stars, indicating a commitment to clinical excellence [4] Cash Flow and Collections - The "days revenue outstanding" metric improved significantly, dropping to 40.9 days from 52.1 days in Q2 2024, indicating faster payment collections [7] - Cash from operations increased to $67.2 million compared to $52.3 million in Q2 2024, with ending cash and equivalents at $337.3 million as of June 30, 2025 [7] Future Outlook - Company leadership did not provide forward financial guidance for the upcoming quarter or fiscal 2025 due to the pending merger with UnitedHealth Group [9] - Significant regulatory and completion risks associated with the merger were highlighted, impacting future growth prospects [9][10]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%3A) The unaudited condensed consolidated financial statements present the company's financial position, results of operations, and cash flows for the periods ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets grew to $2.22 billion as of June 30, 2025, driven by increased cash and equity, while total liabilities slightly decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $662,198 | $632,083 | | **Total Assets** | **$2,215,385** | **$2,138,714** | | **Total Current Liabilities** | $488,361 | $514,392 | | **Total Liabilities** | **$940,482** | **$958,749** | | **Total Equity** | **$1,274,903** | **$1,179,965** | [Condensed Consolidated Income Statements](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20INCOME%20STATEMENTS) Net income for H1 2025 surged due to a significant gain on an equity investment, despite higher merger-related expenses impacting Q2 2025 results Income Statement Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Service Revenue** | $621,861 | $591,187 | $1,216,642 | $1,162,601 | | **Operating Income** | $45,578 | $52,214 | $88,937 | $83,833 | | **Merger-related expenses** | $26,277 | $11,901 | $43,046 | $32,568 | | **Net Income Attributable to Amedisys** | $28,084 | $32,301 | $89,096 | $46,701 | | **Diluted EPS** | $0.84 | $0.98 | $2.68 | $1.42 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operating activities increased to $63.5 million for H1 2025, driven by higher net income and favorable changes in working capital Cash Flow Summary for the Six-Month Periods Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $63,524 | $45,764 | | **Net cash used in investing activities** | ($2,295) | ($4,639) | | **Net cash used in financing activities** | ($27,167) | ($22,630) | | **Net increase in cash** | $34,062 | $18,495 | | **Cash at end of period** | $337,304 | $157,358 | [Notes to Financial Statements](index=11&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes provide critical context on Medicare reliance, the pending UnitedHealth Group merger, a significant equity investment gain, and other contingencies - The company derives approximately **68% of its consolidated net service revenue from Medicare** for the six-month period ended June 30, 2025[19](index=19&type=chunk) - Amedisys is in a pending merger with UnitedHealth Group, which is being challenged by a DOJ lawsuit, with a trial tentatively set for October 2025[74](index=74&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - In Q1 2025, the company recognized a **$48.1 million gain** from a transaction involving its equity method investment, Medalogix[68](index=68&type=chunk) Net Service Revenue by Segment (Six Months Ended June 30, 2025) | Segment | Net Service Revenue (in millions) | % of Total | | :--- | :--- | :--- | | Home Health | $775.5 | 63.7% | | Hospice | $421.1 | 34.6% | | High Acuity Care | $20.0 | 1.6% | | **Total** | **$1,216.6** | **100.0%** | [Management's Discussion and Analysis (MD&A)](index=27&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses revenue growth driven by volume and rates, the pending UnitedHealth merger, proposed CMS rule changes, and the company's sufficient liquidity - Excluding merger-related expenses, **consolidated operating income for H1 2025 increased by $15 million** year-over-year, driven by rate increases and volume growth, but partially offset by wage increases and a shift in home health payor mix[153](index=153&type=chunk) - CMS has proposed a **6.4% decrease in payments to home health providers for CY 2026**, which the company is actively lobbying against[131](index=131&type=chunk) - The company's liquidity position is strong, with **$337.3 million in cash** and cash equivalents and **$508.0 million in availability** under its Revolving Credit Facility as of June 30, 2025[182](index=182&type=chunk) - **Days revenue outstanding (DRO) improved to 40.9 days** at June 30, 2025, a significant decrease from 52.1 days at June 30, 2024, which was impacted by the Change Healthcare outage[183](index=183&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Consolidated net service revenue for H1 2025 grew 4.6% to $1.22 billion, with growth across all segments driven by increased volume and favorable rates Segment Operating Income (Loss) for Six-Month Periods (in millions) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Home Health | $129.6 | $127.9 | | Hospice | $103.4 | $96.8 | | High Acuity Care | ($7.2) | ($9.0) | - **Home Health same-store total volume grew 6%** in H1 2025, while average Medicare revenue per completed episode increased to $3,034 from $3,017[158](index=158&type=chunk)[161](index=161&type=chunk) - **Hospice same-store average daily census grew 1%** in H1 2025, and revenue per day increased to $179.73 from $172.96 year-over-year[164](index=164&type=chunk)[166](index=166&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow improved to $63.5 million in H1 2025, reflecting recovery from the prior year's Change Healthcare cybersecurity incident - The Change Healthcare cybersecurity incident in early 2024 delayed non-Medicare claim submissions, **reducing operating cash flow in that period**[180](index=180&type=chunk) - On April 17, 2025, the company entered into the Fourth Amendment to its Credit Agreement, **extending the maturity date to July 30, 2027**[187](index=187&type=chunk) Patient Accounts Receivable Aging at June 30, 2025 (in millions) | Payor | 0-90 Days | 91-180 Days | 181-365 Days | Total | | :--- | :--- | :--- | :--- | :--- | | Medicare | $174.6 | $6.8 | $0.9 | $182.3 | | Other | $101.3 | $9.8 | $2.1 | $113.2 | | **Total** | **$275.9** | **$16.6** | **$3.0** | **$295.5** | [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=ITEM%203%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate fluctuation on its $338.1 million of variable-rate debt - A hypothetical **1.0% increase in interest rates** would cause the company's annual interest expense to increase by approximately **$3.4 million**, assuming no principal repayments[193](index=193&type=chunk) [Controls and Procedures](index=44&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Based on an evaluation as of June 30, 2025, the principal executive officer and principal financial officer concluded that **disclosure controls and procedures were effective** at a reasonable assurance level[196](index=196&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter ended June 30, 2025, that have materially impacted, or are reasonably likely to materially impact, internal controls[197](index=197&type=chunk) [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=45&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section cross-references notes detailing the pending DOJ merger litigation and other routine legal actions - For information on legal proceedings, the report refers to **Note 4 (Mergers and Acquisitions)** and **Note 7 (Commitments and Contingencies)**[200](index=200&type=chunk) [Risk Factors](index=45&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company reports no material changes to the risk factors disclosed in its 2024 Annual Report on Form 10-K - The company directs stakeholders to the Risk Factors section of its 2024 Annual Report on Form 10-K, indicating **no new material risks have been identified** in the current quarter[201](index=201&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company acquired 32,857 shares in Q2 2025 from employees to satisfy tax obligations on vested stock awards Common Stock Purchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 593 | $92.84 | | May 2025 | 21,850 | $96.00 | | June 2025 | 10,414 | $94.95 | | **Total** | **32,857** | **$95.61** | [Other Information](index=45&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The Chief Accounting Officer adopted a Rule 10b5-1 trading plan for the potential sale of up to 4,774 shares - Chief Accounting Officer Allyson Guidroz adopted a **10b5-1 trading plan** for the sale of up to 4,774 shares, with the first possible trade on August 18, 2025[205](index=205&type=chunk) [Exhibits](index=46&type=section&id=ITEM%206.%20EXHIBITS) This section lists all filed exhibits, including the amended credit agreement and required CEO/CFO certifications - Key exhibits filed include the **Fourth Amendment to the Amended and Restated Credit Agreement**, and CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[207](index=207&type=chunk)

Group 1 - Amedisys reported $621.86 million in revenue for the quarter ended June 2025, a year-over-year increase of 5.2% [1] - The EPS for the same period was $1.54, compared to $1.32 a year ago, representing a surprise of +10.79% over the consensus estimate of $1.39 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $609.65 million by +2% [1] Group 2 - Key metrics for Amedisys include Net Service Revenue for High Acuity Care at $10.7 million, a +9.2% change year-over-year [4] - Net Service Revenue for Hospice was reported at $215 million, reflecting a +5.4% year-over-year change [4] - Net Service Revenue for Home Health was $396.2 million, representing a +5% increase compared to the previous year [4] Group 3 - Amedisys shares have returned -1.5% over the past month, underperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Company Performance - Amedisys reported quarterly earnings of $1.54 per share, exceeding the Zacks Consensus Estimate of $1.39 per share, and up from $1.32 per share a year ago, representing an earnings surprise of +10.79% [1] - The company posted revenues of $621.86 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.00%, compared to year-ago revenues of $591.19 million [2] - Over the last four quarters, Amedisys has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Outlook - Amedisys shares have increased approximately 6.7% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $614.59 million, and for the current fiscal year, it is $4.90 on revenues of $2.45 billion [7] - The estimate revisions trend for Amedisys was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which Amedisys belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [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]

AMEDISYS REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS BATON ROUGE, Louisiana (July 29, 2025) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and six-month periods ended June 30, 2025. Three-Month Periods Ended June 30, 2025 and 2024 Adjusted Quarterly Results* Six-Month Periods Ended June 30, 2025 and 2024 Adjusted Year to Date Results* * See pages 2 and 8 - 9 for the definition and reconciliations of non-GAAP financial measures to GAAP measures. Exhibit 99.1 The suppleme ...

Core Insights - Amedisys is expected to benefit from valuable partnerships and acquisitions that will generate significant synergies in the upcoming quarters, while facing challenges from a dull macroeconomic environment and competitive pressures [2][4][6] Company Performance - Amedisys shares have increased by 5.9% over the past year, outperforming the industry growth of 3.4% and the S&P 500's growth of 11% [3] - The company has a market capitalization of $3.18 billion and an earnings yield of 5.1%, which is higher than the industry's 4.2% [3] Strategic Initiatives - Amedisys is expanding its business through strategic partnerships and acquisitions, including participation in a new Medicare alternative payment model aimed at supporting dementia patients [4] - The company has introduced advanced molecular testing in collaboration with Patient Choice Laboratories to enhance diagnostic accuracy and speed [4] Clinical Quality - Amedisys has achieved an average Quality of Patient Care star rating of 4.18, with 88% of its care centers receiving 4 stars or higher, and 11 centers achieving a perfect 5-star rating [5][7] - The Patient Satisfaction star average stands at 4.02, exceeding the industry average [5] Market Challenges - The company faces macroeconomic pressures, including high labor costs due to inflation, which are expected to persist through 2025 [6] - Amedisys operates in a fragmented market with intense competition from local and hospital-owned providers, impacting its growth potential [8] Financial Estimates - The Zacks Consensus Estimate for Amedisys' 2025 earnings per share has decreased by 0.4% to $4.90, while the revenue estimate is projected at $2.46 billion, reflecting a 4.6% increase from the previous year [9]

Company Overview - Amedisys (AMED) is part of the Medical group, which consists of 997 companies and is currently ranked 5 within the Zacks Sector Rank [2] - Amedisys operates in the Medical - Outpatient and Home Healthcare industry, which includes 17 individual stocks and is ranked 73 in the Zacks Industry Rank [5] Performance Analysis - Year-to-date, Amedisys has returned 3.1%, outperforming the average loss of 6.8% in the Medical sector [4] - The Zacks Consensus Estimate for Amedisys's full-year earnings has increased by 1.5% over the past quarter, indicating improved analyst sentiment [3] - In comparison, BrightSpring Health Services, Inc. has returned 34.6% year-to-date and has a consensus EPS estimate increase of 23.8% over the past three months [4][5] Industry Context - The Medical - Outpatient and Home Healthcare industry has seen an average gain of 2.6% this year, with Amedisys performing better than this average [5] - The broader Medical Services industry, which includes BrightSpring Health Services, has declined by 5.5% this year and is ranked 65 [6]

Amedisys, Inc. (AMED) reported first-quarter 2025 adjusted earnings per share (EPS) of $1.25, which rose 21.4% year over year. The metric surpassed the Zacks Consensus Estimate by 10.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) GAAP EPS was $1.84 compared with 44 cents in the corresponding period of 2024. The earnings report, however, did not have any immediate impact on the company's share price of $93.63. AMED's Q1 Revenues The quarter's adjustments include certain merger- ...