AMED Q4 Earnings and Revenues Miss, Margins Dip, Stock Rises

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].