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Amedisys Earnings Preview

By Narrative Science – Updated Nov 7, 2016 at 7:54PM

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Amedisys will unveil its latest earnings on Tuesday, August 2.

Investors never know what to expect for Amedisys (Nasdaq: AMED), as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Tuesday, August 2. Amedisys, is a provider of home health services to the chronic, co-morbid, aging American population.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Amedisys with 10 of 13 analysts rating it hold. Analysts don't like Amedisys as much as competitor Gentiva Health Services overall. Three out of 10 analysts rate Gentiva Health Services a buy compared to two of 13 for Amedisys. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $383.3 million in revenue this quarter. That would represent a decline of 9.2% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.70 per share. Estimates range from $0.54 to $0.76.

What our community says:
CAPS All Stars are solidly backing the stock, with 87.5% granting it an "outperform" rating. The community at large agrees with the All Stars, with 90.3% assigning it a rating of "outperform." Fools are bullish on Amedisys and haven't been shy with their opinions lately, logging 348 posts in the past 30 days. Amedisys' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Amedisys' income has fallen year over year by an average of 37%. Revenue has fallen in the past two quarters. The company's gross margin shrank by 3.1 percentage points in the last quarter. Revenue fell 11.8% while cost of sales fell 6.3% to $191.2 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters:

Quarter

Q1

Q4

Q3

Q2

Gross Margin

47.5%

49.1%

49.0%

50.4%

Operating Margin

7.5%

9.8%

9.2%

13.3%

Net Margin

4.2%

5.6%

5.3%

7.6%

One final thing: If you want to keep tabs on Amedisys movements, and for more analysis on the company, make sure you add it to your Watchlist.

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Stocks Mentioned

Amedisys, Inc. Stock Quote
Amedisys, Inc.
AMED
$103.76 (-2.21%) $-2.35

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