On Apr 8, we issued an updated research report on
) - a leading operator of single-specialty practice-based
ambulatory surgery centers (ASCs). Despite uncertain economic
conditions and high unemployment, we are encouraged by AmSurg's
fourth-quarter results that squarely beat the Zacks Consensus
AmSurg's fourth-quarter 2013 adjusted earnings per share (EPS)
of 60 cents surged 22% year over year marking its third
consecutive quarter of double-digit growth. EPS also steered
ahead of the Zacks Consensus Estimate of 57 cents and exceeded
the company's guidance range of 56−58 cents. Revenues increased
17% to $284.6 million beating the Zacks Consensus Estimate of
Fourth-quarter 2013 revenues were encouraging owing to strong
growth across all categories. Net revenue per procedure showed an
improvement, driven by a combination of mix change due to an
increase in the number of multispecialty centers as a percentage
of center mix. Although same-center revenues increased a mere 2%
on a year-over-year basis, the company is confident about figures
rising further in the next fiscal as Ophthalmology and GI
continue to perform well.
We are also encouraged with the company's newly formed joint
venture with a hospital system and expect AmSurg to go ahead with
its acquisition pipeline, supported by a strong cash position.
Government agencies have undertaken initiatives to curtail
healthcare expenditure, thereby resulting in a shift toward
ambulatory surgery centers from admission to traditional
However, AmSurg is encountering several challenges in the form
of reimbursement issues and economic uncertainty. All of these
collectively result in deferring elective procedures, along with
a decline in doctor visits by patients, which in turn, leads to
lower surgical volume.
AmSurg currently carries a ZacksRank #3 (Hold). Other stocks
worth considering in the broader medical sector are
St. Jude Medical Inc.
). While Enzymotec holds a Zacks Rank #1 (Strong Buy), St. Jude
Medical and Covidien carry a Zacks Rank #2 (Buy).
AMSURG CORP (AMSG): Free Stock Analysis
COVIDIEN PLC (COV): Free Stock Analysis
ENZYMOTEC LTD (ENZY): Free Stock Analysis
ST JUDE MEDICAL (STJ): Free Stock Analysis
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