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On Monday, Raymond (NSE:RYMD) James reaffirmed its Market Perform rating on Amedisys stock, following the company’s fourth-quarter financial results for 2024. Amedisys reported a revenue of $598.1 million, which slightly missed the consensus estimate of $598.5 million. The company’s adjusted EBITDA came in at $54.6 million, falling short of the expected $59.1 million. According to InvestingPro data, Amedisys maintains a "Good" overall financial health score, with trailing twelve-month revenue reaching $2.35 billion. The company currently trades near its 52-week high, suggesting strong market confidence despite the quarterly miss.
The Home Health segment of Amedisys experienced a year-over-year decline in EBITDA by 5.0%, despite a revenue growth of 5.0%. The segment’s margins contracted by 160 basis points year-over-year to 15.1%. Same-store (SS) Medicare Fee-For-Service (FFS) revenue decreased by 4% year-over-year, while SS non-Medicare (Medicare Advantage or MA) revenue saw a significant increase of 19% year-over-year, reflecting the industry-wide shift towards MA per visit volumes. The cost per visit increased by 3.4% year-over-year, and visits per episode remained flat at 12.0, compared to the third quarter of 2024 and down from 12.2 in the fourth quarter of 2023. InvestingPro analysis shows the company maintains a moderate debt level and operates with a healthy current ratio of 1.23, providing stability during this transition period.
The company’s Hospice segment showed a modest EBITDA growth of 1.6% year-over-year, with hospice SS average daily census (ADC) growing by 1% year-over-year, which was consistent with the growth in the third quarter of 2024. However, the cost per day in this segment increased by 3.5% year-over-year.
Contessa, another segment of Amedisys, reported sluggish revenue at $8.1 million in the fourth quarter of 2024, which was a slight increase from $7.7 million in the third quarter of the same year. The EBITDA losses for Contessa improved to $(3.7) million, compared to $(5.7) million in the previous quarter. Additionally, the quarter included a $48.4 million write-down of the Contessa asset.
Amedisys has not provided financial guidance due to the pending acquisition by UnitedHealth Group (NYSE:UNH). The acquisition’s impact on the company’s future financial performance remains uncertain until the transaction is completed. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with three analysts recently revising their earnings estimates upward for the upcoming period. For more detailed insights and additional ProTips about Amedisys’s valuation and future prospects, subscribers can access the full analysis on InvestingPro.
In other recent news, Amedisys Inc (NASDAQ:AMED). has terminated its agreement to sell certain home health care centers to VCG Luna, an affiliate of VitalCaring Group. The decision follows legal challenges from the U.S. Department of Justice, which sought to block the proposed transaction on antitrust grounds. Meanwhile, Amedisys shareholders recently elected nine directors to serve for a one-year term and ratified KPMG LLP as the company’s independent accountants for the fiscal year ending December 31, 2024. In another development, Amedisys and UnitedHealth Group have extended their $3.3 billion merger agreement deadline amid scrutiny from the DOJ. The extension includes a significant increase in the break fee, now ranging from $275 million to $325 million, if certain conditions are not met by May 1, 2025. RBC Capital Markets has maintained an Outperform rating on Amedisys shares, highlighting the strategic alignment of the acquisition with UnitedHealth’s focus on value-based care. The merger’s deadline has been pushed to December 31, 2025, or 10 days after a final court decision, whichever comes first. These recent developments are being closely watched by investors and industry observers.
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