Home Health and Hospice Company,
) announced its first quarter 2013 preliminary results yesterday.
The company expects to report the quarter's earnings per share
(EPS) in the range of 8 -10 cents. However, this includes certain
governmental investigation related legal costs which are expected
to come in around $ 2 million or 4 cents a share. The current
Zacks Consensus EPS Estimate is pegged at 21 cents.
Besides, the company expects the quarter's revenue to be
around $339 million, well behind the Zacks Consensus Estimate of
$362 million. Amedisys plans to release its full first-quarter
earnings on Apr 30, 2013, which according to the preliminary
result, is going to be another miss for Amedisys.
Revs in Detail
Low revenue figures are attributable to weakness in demand in
the home health and hospice division. Growth of 2% in total
medical admissions in the home health division was offset by the
sluggishness in the recertification rate. Recertification rate is
expected to be around 38% versus 44% in first-quarter 2012 and
40% in fourth quarter 2012. Home Health results were impacted by
the sequestration, which lowered the Medicare reimbursement by 2%
or 3 cents a share.
Hospice division also witnessed a decline in the reported
quarter. The average daily census in the Hospice division
declined to 5,091 versus 5,190 in the year-ago quarter. Hospice
total admission increased 2% year over year but was offset by
greater number of discharges than normal. Hospice results were
not affected by the sequestration in the first quarter.
Based on the preliminary results, it seems that Amedisys is
likely to post another challenging quarter with estimates miss.
While Amedisys has shown progress in the total medical admissions
volumes, sluggish growth in the recertification rate remains a
cause of concern. The highly uncertain home nursing reimbursement
environment, coupled with significant reduction in Medicare
reimbursement in 2011 and 2012 has affected performance at
Amedisys over the past few quarters. In the home health division,
the sequestration cuts have negatively affected the company's
earnings. We expect the healthcare reimbursement pressure to
persist even in 2013, thereby weakening the company's
Amedisys currently carries a Zacks rank #3 (Hold). Other
stocks worth considering are
Addus HomeCare Corporation
) which carries a Zacks Rank #1 (Strong Buy) and
China Cord Blood Corporation
) which carries a Zacks Rank #2 (Buy).
ADDUS HOMECARE (ADUS): Free Stock Analysis
AMEDISYS INC (AMED): Free Stock Analysis
CHEMED CORP (CHE): Free Stock Analysis Report
CHINA CORD BLD (CO): Free Stock Analysis
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