Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of home health care provider Amedisys (NASDAQ: AMED ) plummeted 16% today after its quarterly results and outlook disappointed Wall Street.
So what: The stock surged in early August on a strong second quarter, but a disappointing third quarter -- loss of $90.4 million on a net service revenue drop of 17% -- coupled with downbeat guidance is forcing Mr. Market to sober up. While the loss was largely due to a one-time $150 million charge related to its settlement of an investigation by the U.S. Department of Justice, results were also affected by soft volume and higher costs, reminding investors about the strong regulatory and secular headwinds that Amedisys continues to face.
Now what: Management now sees 2013 EPS of $0.20-$0.25 on revenue of $1.24 billion-$1.25 billion.
"This guidance excludes the accrual related to our U.S. Department of Justice settlement, and other certain items disclosed in more detail elsewhere in this earnings release," noted Amedisys. "However, our guidance includes an estimate of legal costs associated with our on-going legal matters."
When you combine that ongoing uncertainty with the fact that the stock is still well above its 52-week lows, Amedisys' risk/reward trade-off remains unappealing.
A healthier way to build wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.