Core Viewpoint - Amedisys (AMED) shares have increased by approximately 1.3% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Group 1: Earnings Report and Market Reaction - The most recent earnings report is crucial for understanding the catalysts affecting Amedisys [1] - Fresh estimates for Amedisys have remained flat over the past month, indicating a lack of significant changes in market expectations [2] Group 2: VGM Scores and Investment Strategy - Amedisys currently holds a Growth Score of A, but has a low Momentum Score of F, while receiving a B grade for value, placing it in the top 40% for this investment strategy [3] - The aggregate VGM Score for Amedisys is A, which is relevant for investors not focused on a single strategy [3] Group 3: Outlook - Amedisys has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4]

Core Viewpoint - Amedisys is positioned for growth due to its improving clinical quality and strategic partnerships, although macroeconomic challenges and competitive pressures may limit its potential [1][6]. Group 1: Clinical Quality and Patient Satisfaction - Amedisys has achieved high Quality of Patient Care and Patient Satisfaction star ratings, with an average Quality of Patient Care star rating of 4.18 and 88% of care centers rated 4 stars or higher [3][4]. - The company's Patient Satisfaction star average is 4.02, which exceeds the industry average [3]. Group 2: Strategic Initiatives - Amedisys is expanding its business through acquisitions and partnerships, including Contessa Health's participation in a new Medicare alternative payment model aimed at dementia care [4][5]. - The introduction of advanced molecular testing in collaboration with Patient Choice Laboratories is part of Amedisys' strategy to enhance its service offerings [5]. Group 3: Financial Performance and Market Position - Amedisys has a market capitalization of $3.03 billion and an earnings yield of 5.2%, which is higher than the industry's 4.4% [2]. - The Zacks Consensus Estimate for 2025 earnings per share is $4.45, with revenues projected at $2.46 billion, reflecting a 5% increase from the previous year [11]. Group 4: Market Challenges - The company faces macroeconomic pressures, including rising costs of services, which increased by 7.2%, leading to a gross margin contraction of 131 basis points in Q4 2024 [6][7]. - Amedisys operates in a fragmented market with significant competition from local providers and non-profit organizations, which may impact its growth [8][10].

Core Viewpoint - Amedisys, Inc. reported lower-than-expected earnings and revenues for the fourth quarter of 2024, with both metrics missing consensus estimates, despite some growth in service revenues and adjusted earnings per share [10][11]. Financial Performance - Adjusted EPS for Q4 2024 was 96 cents, a 2.1% increase year over year, but missed the Zacks Consensus Estimate by 8.6% [1][2]. - Full-year 2024 adjusted EPS was $4.32, up 0.5% year over year [2]. - Net service revenues for Q4 totaled $598.0 million, a 4.8% increase year over year, but slightly missed the Zacks Consensus Estimate by 0.02% [3]. - Full-year 2024 net service revenues reached $2.35 billion, up 4.9% year over year [3]. Segment Performance - Home Health division revenues were $377.0 million, up 5% year over year, with Medicare revenues decreasing by 3.9% to $212.4 million, while non-Medicare revenues increased by 19.4% to $164.6 million [4]. - Hospice division revenues were $212.9 million, a 3.3% increase year over year, with Medicare revenues up 4.2% to $202.4 million, and non-Medicare revenues down 11% to $10.5 million [4]. - High Acuity Care segment reported revenues of $8.1 million, compared to $5.9 million in the previous year [5]. Margins and Expenses - Gross profit increased by 1.6% to $253.4 million, but gross margin fell by 131 basis points to 42.4% due to a 7.2% rise in service costs [6]. - SG&A expenses rose by 1.9% to $137.6 million, while other expenses increased by 1.0% to $58 million [6]. - Adjusted operating profit was $57.8 million, up 1.7% year over year, but adjusted operating margin contracted by 29 basis points to 9.7% [6]. Liquidity and Cash Position - Amedisys ended 2024 with cash and cash equivalents of $303.2 million, up from $126.4 million at the end of 2023 [7]. - Long-term obligations totaled $339.3 million at the end of 2024, down from $361.9 million at the end of 2023 [7]. - Cumulative net cash from operating activities was $221.7 million, compared to $137.2 million a year ago [7]. Merger Developments - Amedisys is in the process of merging with UnitedHealth Group's Optum, which aims to enhance value-based care [8]. - A purchase agreement was signed for the sale of certain home health care centers to VCG Luna, LLC, contingent on the successful closing of the merger [9].

Company Overview - Amedisys operates three segments: home health, hospice, and high acuity care, with approximately 19,000 employees across 519 care centers in 38 states[18]. - The home health segment includes 347 care centers and performed over 10.7 million visits for more than 499,000 patients annually[18][22]. - The high acuity care segment was established through the acquisition of Contessa Health on August 1, 2021, enhancing Amedisys's capabilities in delivering inpatient-level care at home[28]. - The company divested its personal care business on March 31, 2023, streamlining its focus on core healthcare services[31]. - Amedisys has approximately $1.2 billion in goodwill as of December 31, 2024, with additional acquisitions likely to increase this amount[186]. - The company employs around 19,000 employees across various segments, including 11,800 in home health and 6,100 in hospice[183]. Financial Performance - Medicare accounts for approximately 70% to 74% of Amedisys's net service revenue over the last three years, highlighting the company's reliance on government payors[19]. - Medicare accounted for 70%, 73%, and 74% of the company's consolidated net service revenue during 2024, 2023, and 2022, respectively[137]. - The 2025 Home Health Final Rule is expected to result in a 0.5% increase in payments to home health providers, driven by a 2.7% payment update offset by adjustments totaling -2.2%[47]. - CMS estimates a 2.9% increase in hospice payments for fiscal year 2025, with the aggregate cap amount raised to $34,465[52]. - The total temporary adjustment calculated for CY 2020 through CY 2023 is $4.5 billion, with future proposals to convert this amount into a factor applied to base payment rates[47]. - The company anticipates financial benefits from acquisitions, contingent on improving clinical performance and controlling costs[197]. Regulatory Compliance - Compliance with Medicare requirements is monitored through established processes and controls over coding, billing, and patient recertifications[62]. - The company is subject to various audits and compliance reviews by Medicare, which can result in claim adjustments or overpayment determinations[48]. - Compliance with Medicare regulations is essential for participation in the Medicare program, which includes conditions of participation and payment standards[72]. - The company is subject to various federal and state anti-fraud and abuse laws, including the federal Anti-Kickback Statute and the Stark Law, which impose significant penalties for violations[78][81]. - The company must comply with HIPAA regulations, which impose standards for the use and disclosure of health information, with penalties for violations ranging from $141 to a maximum of $2.134 million[93]. - The Improving Medicare Post-Acute Care Transformation Act (IMPACT Act) requires standardized patient assessment data reporting, with penalties for non-compliance resulting in a 2% reduction in market basket prices[98]. Merger and Acquisition Activities - Amedisys entered into a merger agreement with UnitedHealth Group on June 26, 2023, which will result in Amedisys becoming a wholly owned subsidiary[34]. - The proposed Merger with UnitedHealth Group is subject to various closing conditions, including government approvals, which may not be satisfied by the end of the Waiver Period[122]. - Amedisys has incurred significant costs related to the Merger, including potential termination fees of $125 million under certain circumstances[128]. - The ongoing DOJ Action against the Merger creates uncertainty regarding its completion timeline and conditions[124]. - If the Merger is not completed, Amedisys will remain a public company and continue to face risks that could adversely affect its business and stock price[127]. - The Merger Agreement includes restrictions on Amedisys's business activities, potentially limiting strategic opportunities during the pending period[128]. Quality of Care - Amedisys's Quality of Patient Care star average is 4.18, with 88% of care centers rated at 4+ stars, indicating a strong commitment to clinical quality[24]. - Amedisys's hospice outreach strategy has increased its patient population to better reflect community health needs, focusing on conditions like heart disease and dementia[27]. - Quality patient care is crucial for generating referrals; failure to meet quality metrics could adversely impact the company's business[161]. - The company must maintain relationships with existing patient referral sources, as their loss could materially affect financial performance[164]. Operational Risks - The company faces competition from local, publicly-owned, and hospital-owned health care providers, competing primarily on service quality and personnel availability[113]. - A shortage of qualified clinicians could increase operating costs and adversely affect the company's ability to attract and retain personnel[158]. - Cybersecurity threats pose significant risks to the company's operations, and a breach could lead to substantial costs and reputational harm[171]. - The company relies on third-party vendors for critical information systems, and any security incidents involving these vendors could disrupt operations and impact financial performance[176]. - A recent cyber-attack on a subsidiary resulted in an estimated increase of approximately $60 million in accounts receivable due to delays in submitting non-Medicare claims[176]. Economic and Market Conditions - The ongoing inflationary environment has led to increased labor and healthcare costs, impacting the company's financial condition[189]. - Economic downturns and federal budget pressures may result in reduced payments and covered services under Medicare and Medicaid programs, adversely affecting the company's financial condition[154]. - The company is exposed to geopolitical tensions, such as the Russia-Ukraine conflict, which may disrupt global supply chains and financial markets[188]. Future Outlook - Future changes in Medicare reimbursement policies could materially affect the company's financial condition and results of operations[139]. - The home health and hospice industry is highly competitive, with few barriers to entry, which may limit the company's market share[165]. - The success of the high acuity care segment depends on entering into risk-based contracts with managed care health plans; failure to do so could adversely affect financial results[169]. - The implementation of value-based purchasing could lead to adjustments in Medicare payments based on performance against quality measures, potentially impacting revenue[153].

分组1 - Amedisys reported quarterly earnings of $0.96 per share, missing the Zacks Consensus Estimate of $1.05 per share, representing an earnings surprise of -8.57% [1] - The company posted revenues of $598.05 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.02%, compared to year-ago revenues of $570.79 million [2] - Over the last four quarters, Amedisys has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $1.12 on revenues of $599.13 million, and for the current fiscal year, it is $4.84 on revenues of $2.47 billion [7] - The Zacks Industry Rank for Medical - Outpatient and Home Healthcare is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Amedisys shares have added about 0.8% since the beginning of the year, underperforming the S&P 500's gain of 1.3% [3]

Financial Performance - Net service revenue increased by $27.3 million to $598.1 million in Q4 2024 compared to $570.8 million in Q4 2023[4] - For the full year 2024, net service revenue increased by $111.9 million to $2,348.3 million compared to $2,236.4 million in 2023[4] - Full year net income attributable to Amedisys, Inc. was $43.2 million, despite merger-related expenses totaling $66.6 million and a non-cash impairment charge of $48.4 million, compared to a net loss of $9.7 million in 2023[4] - Adjusted net income attributable to Amedisys, Inc. for the full year was $142.7 million, slightly up from $140.6 million in 2023[4] - The diluted earnings per share for Q4 2024 was a loss of $0.62, compared to earnings of $0.59 per share in Q4 2023[4] - The diluted EPS for the year ended December 31, 2024 was $3.01, compared to $4.60 for the year ended December 31, 2023[35] Operational Metrics - The company has approximately 19,000 employees and serves over 499,000 patients annually across 519 care centers[6] - Total assets increased to $2,138.7 million in 2024 from $2,060.2 million in 2023, representing a growth of 3.8%[15] - Total current assets rose to $632.1 million in 2024, a 27.2% increase from $496.9 million in 2023[15] - Total liabilities increased slightly to $958.7 million in 2024 from $940.4 million in 2023, a growth of 1.5%[15] - Cash, cash equivalents, and restricted cash at the end of the period reached $303.2 million, up from $138.9 million in 2023[16] - Days revenue outstanding improved to 43.0 days in 2024 from 47.7 days in 2023, reflecting better collection efficiency[17] Revenue Breakdown - Medicare revenue for the Home Health segment decreased by 4% to $212.4 million in Q4 2024, while Non-Medicare revenue increased by 19% to $164.6 million[20] - Medicare net service revenue for the year ended December 31, 2024, was $856.4 million, a decrease of 2% from $874.2 million in 2023[21] - Non-Medicare net service revenue increased by 19.7% to $634.1 million in 2024, compared to $529.4 million in 2023[21] - Hospice Medicare revenue for the year increased by 3.9% to $783.9 million, compared to $754.0 million in 2023[24] - Average Medicare revenue per completed episode increased to $3,030 in Q4 2024 from $2,997 in Q4 2023[20] - Total admissions rose by 11% to 441,945 in 2024, up from 399,752 in 2023[21] Expenses and Losses - Net loss attributable to Amedisys, Inc. was $20.4 million in Q4 2024, including merger-related expenses of $17.4 million and a non-cash goodwill impairment charge of $48.4 million, compared to a net income of $19.3 million in Q4 2023[4] - General and administrative expenses for the year increased to $264.8 million in 2024, up from $237.5 million in 2023[29] - High acuity care segment reported a total operating loss of $68.5 million for the year ended December 31, 2024, compared to a loss of $25.6 million in 2023[27] - Adjusted EBITDA for Q4 2024 was $54.6 million, down from $56.7 million in Q4 2023[4] - Adjusted EBITDA for the year ended December 31, 2024, was $245.8 million, slightly down from $247.0 million in 2023[31] - Merger-related expenses for the year ended December 31, 2024 totaled $66,638,000, an increase from $36,672,000 in the previous year[35] Mergers and Acquisitions - Amedisys will not conduct a quarterly earnings call due to the pending merger with UnitedHealth Group Incorporated[4] - The merger with UnitedHealth Group is expected to impact various operational aspects, including patient and provider relationships[9] - The company completed the sale of its personal care business on March 31, 2023, impacting revenue streams[28] Impairments and Adjustments - The company recorded an impairment expense of $48,391,000 for both the three-month and year ended December 31, 2024[35] - For the three-month period ended December 31, 2024, total certain items impacting net loss amounted to $57,802,000, with a net of tax impact of $52,337,000[35] - The total certain items impacting net loss for the year ended December 31, 2023 was $154,344,000, with a net of tax impact of $150,384,000[35] - The adjusted net income attributable to Amedisys, Inc. is calculated excluding certain items as defined in the financial notes[36] - Adjusted EBITDA is defined as net (loss) income before net interest expense, provision for income taxes, and depreciation and amortization, excluding certain items[36]

Core Viewpoint - Amedisys, Inc. reported its financial results for the fourth quarter and full year of 2024, highlighting significant changes in revenue, net income, and operational metrics amid a pending merger with UnitedHealth Group [1][2]. Financial Performance - Net service revenue for Q4 2024 increased by $27.3 million to $598.1 million compared to $570.8 million in Q4 2023 [4]. - For the full year 2024, net service revenue rose by $111.9 million to $2,348.3 million from $2,236.4 million in 2023 [4]. - The company reported a net loss attributable to Amedisys, Inc. of $20.4 million for Q4 2024, which included merger-related expenses of $17.4 million and a non-cash goodwill impairment charge of $48.4 million [4]. - In contrast, the net income attributable to Amedisys, Inc. for Q4 2023 was $19.3 million, which included merger-related expenses of $11.5 million [4]. - Adjusted EBITDA for Q4 2024 was $54.6 million, down from $56.7 million in Q4 2023 [4]. - For the full year 2024, adjusted net income attributable to Amedisys, Inc. was $142.7 million, compared to $140.6 million in 2023 [4]. Operational Metrics - The company experienced a decline in Medicare revenue by 4% in Q4 2024, while non-Medicare revenue increased by 19% [19]. - Total admissions for Q4 2024 rose by 8% to 109,686 compared to 101,809 in Q4 2023 [19]. - The average Medicare revenue per completed episode increased to $3,030 in Q4 2024 from $2,997 in Q4 2023 [19]. Balance Sheet Highlights - As of December 31, 2024, total assets were $2,138.7 million, up from $2,060.2 million in 2023 [14]. - Cash and cash equivalents increased significantly to $303.2 million from $126.5 million in 2023 [14]. - Total liabilities stood at $958.7 million, compared to $940.4 million in 2023 [14]. Segment Information - In the Home Health segment, net service revenue for Q4 2024 was $377.0 million, up from $358.9 million in Q4 2023 [19]. - The Hospice segment reported net service revenue of $212.9 million for Q4 2024, compared to $206.0 million in Q4 2023 [23]. - The High Acuity Care segment generated $8.1 million in net service revenue for Q4 2024, an increase from $5.9 million in Q4 2023 [26].

The market expects Amedisys (AMED) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, ...

BATON ROUGE, La., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED), a leading provider of home health, hospice and high-acuity care services, has recognized 47 employees with the prestigious Spirit of Excellence Awards, one of the company’s highest honors. “Every day, our employees bring warmth, compassion and clinical expertise into the homes of our patients, offering the care they need in the place they most want to be,” said Richard Ashworth, President and Chief Executive Officer. “We are ...

BATON ROUGE, La., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ:AMED), a leading provider of home health, hospice and high-acuity care services, has recognized 47 employees with the prestigious Spirit of Excellence Awards, one of the company's highest honors. "Every day, our employees bring warmth, compassion and clinical expertise into the homes of our patients, offering the care they need in the place they most want to be," said Richard Ashworth, President and Chief Executive Officer. "We are p ...