Home healthcare provider
) recently revealed that it continues with the offerings of The
Braff Group who will help in the divestment of about 35 care
These locations are a part of the 50 care locations that were
up for consolidation or divestment in Amedisys' last earnings
results conference call. In addition to an outright sale, the
company is open to other arrangements such as joint ventures. The
search for divestment or joint venture options is likely to
stretch into the third quarter of 2013. There is, however, no
guarantee that the search will result in a deal.
The Braff Group has expertise in mergers and acquisitions,
notably in health services, hospice and home health.
Amedisys recently altered its guidance for 2013. Net service
revenue is envisaged in the range of $1.28 to $1.32 billion
compared with $1.425 to $1.45 billion earlier. The company
forecasts earnings per share in the range of 45 to 55 cents
compared with the prior outlook of 60 to 70 cents.
We believe that the highly uncertain home nursing
reimbursement environment, coupled with significant reduction in
Medicare reimbursement in the recent past, has affected Amedisys'
performance over the past few quarters. We expect the healthcare
reimbursement pressure to persist in 2013, thereby weakening the
The stock carries a Zacks Rank #4 (Sell). We are more positive
Becton, Dickinson and Company
) each of which carry a Zacks Rank #2 (Buy) and are
expected to do well.
AMEDISYS INC (AMED): Free Stock Analysis
BECTON DICKINSO (BDX): Free Stock Analysis
CONMED CORP (CNMD): Free Stock Analysis
STERIS CORP (STE): Free Stock Analysis Report
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