The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Amedisys met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Amedisys reported revenue of $370.7 million. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $371.3 million on the same basis. GAAP reported sales were 6.0% lower than the prior-year quarter's $394.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.49. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.31 per share on the same basis. GAAP EPS of $0.15 for Q4 were 81% lower than the prior-year quarter's $0.77 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.5%, 360 basis points worse than the prior-year quarter. Operating margin was 5.5%, 560 basis points worse than the prior-year quarter. Net margin was 1.2%, 440 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $357.9 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $1.46 billion. The average EPS estimate is $0.98.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 846 members out of 939 rating the stock outperform, and 93 members rating it underperform. Among 251 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 216 give Amedisys a green thumbs-up, and 35 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Amedisys is hold, with an average price target of $10.85.
Over the decades, small-cap stocks, like Amedisys have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Amedisys to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.