Amedisys-AMED Q3 Earnings and Revenues Miss, Margins Dip, Stock Falls

Core Insights - Amedisys, Inc. reported adjusted earnings per share (EPS) of $1.00 for Q3 2024, a 2% increase year over year, but missed the Zacks Consensus Estimate by 12.3% [1] - The company's net service revenues reached$ 587.7 million, reflecting a 5.7% year-over-year growth, but also fell short of the Zacks Consensus Estimate by 0.1% [3] - The impending merger with UnitedHealth Group's Optum is expected to close in the second half of 2024, aiming to enhance value-based care delivery [10] Financial Performance - The GAAP EPS was reported at 51 cents, down from 79 cents in the same period of 2023 [1] - Gross profit increased by 2.2% to $250.1 million, while gross margin decreased by 142 basis points to 42.6% due to an 8.3% rise in service costs [6] - Selling, General and Administrative (SG&A) expenses rose by 4.4% to$ 134.8 million, while adjusted operating profit was $58.5 million, a 0.4% increase year over year [7] Segment Analysis - Home Health division revenues totaled$ 372.1 million, up 5.8% year over year, with Medicare revenues decreasing by 2.7% to $212.1 million, while non-Medicare revenues increased by 19.7% to$ 160 million [4] - Hospice division revenues were $207.9 million, a 3.8% increase year over year, with Medicare revenues rising by 4.7% to$ 197.8 million, but non-Medicare revenues fell by 10.6% to $10.1 million [4] - The High Acuity Care segment reported revenues of$ 7.7 million, up from $4.4 million in the previous year [5] Liquidity and Cash Position - Amedisys ended Q3 2024 with cash and cash equivalents of$ 245.4 million, an increase from $149.9 million at the end of Q2 2024 [8] - Cumulative net cash provided by operating activities was$ 151.4 million, compared to $76.9 million a year ago [9] Merger Developments - The merger with UnitedHealth Group involves the sale of certain Amedisys home health care centers and UnitedHealth Group care centers to VCG Luna, LLC, contingent on the merger's successful closing [11]