Amedisys(AMED) Zacks Investment Research·2024-04-29 13:21Core Insights - Amedisys, Inc. reported adjusted EPS of $1.03 for Q1 2024, a 3% increase from $1.00 in the same quarter last year, and beat the Zacks Consensus Estimate by 1.9% [1] - Net service revenues reached $571.4 million, reflecting a year-over-year growth of 2.7% and surpassing the Zacks Consensus Estimate by 1.2% [1] Segment Performance - Home Health division generated net service revenues of $364 million, up 6% year over year, with Medicare revenues at $215.8 million (up 0.2%) and non-Medicare revenues at $148.2 million (up 15.9%) [2] - Hospice division reported net service revenues of $201 million, a 3.9% increase year over year, with Medicare revenues at $190 million (up 4%) and non-Medicare revenues at $11 million (up 2.8%) [2] - High Acuity Care segment saw net service revenues of $6.4 million, a significant increase of 36.2% from the previous year [3] Financial Metrics - Gross profit improved by 3.5% to $249.9 million, with gross margin expanding by 35 basis points to 43.7% [4] - Adjusted operating profit rose by 25.9% to $64 million, with adjusted operating margin increasing by 207 basis points to 11.2% [4] Liquidity and Cash Position - Amedisys ended Q1 2024 with cash and cash equivalents of $108.2 million, down from $126.5 million at the end of 2023 [5] - Long-term obligations were $356.1 million at the end of Q1 2024, a slight decrease from $361.9 million at the end of 2023 [5] - Cumulative net cash used by operating activities was $6.5 million, compared to a cash inflow of $26 million a year ago [5] Strategic Outlook - The company is positioned for growth with an impending merger with UnitedHealth Group's Optum, aimed at enhancing value-based care [6] - Despite the positive earnings and revenue results, challenges include wage increases, wage inflation, and shifts in the home health payor mix [6]