On Aug 22, 2014, Zacks Investment Research downgraded
) to a Zacks Rank #5 (Strong Sell) from a Zacks Rank #3 (Hold).
AmSurg has delivered negative earnings surprises in 2 of the last 4
quarters with an average miss of 0.50%.
Reasons for the Downgrade
AmSurg reported its second-quarter results on July 31, 2014.
Despite the company registering year-over-year improvement in the
quarter, both its top and bottom line missed the Zacks Consensus
Adjusted earnings per share (EPS) from continuing operations
came in at of 63 cents, missing the Zacks Consensus Estimate by a
penny. This earnings result also failed to exceed the EPS guidance
range provided by the company.
Sales grossed $281.1 million improving 5.2% year over year but
missed the Zacks Consensus Estimate of $283.0 million. Moreover,
AmSurg exited the reported quarter with cash and cash equivalents
of $44.9 million, down 11.6% from $50.8 million at the end of 2013.
Besides, headwinds like reduction in workers' compensation
reimbursement, sequestration and increased interest expense are
Following a disappointing second-quarter, AmSurg has witnessed
downward estimate revisions. For the current quarter, out of 4
analysts, 3 have lowered estimate revisions, while for the current
year, out of 4 analysts, 2 have lowered estimates.
The Zacks Consensus Estimate for earnings in 2014 and 2015 has
also showed a downward trend. The consensus for 2014 has declined
10.3% from $2.53 a month ago to $2.27, while the same for 2015 has
dropped 11.1% from $3.16 a month earlier to $2.81.
Other Stocks to Consider
Some better-ranked stocks in the same industry include Almost
Family Inc. (
), Amedisys Inc. (
) and Chemed Corp. (
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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