Amedisys’ earnings fall despite revenue increase

Baton Rouge home health giant Amedisys Inc. reported its first-quarter earnings slipped to $5.5 million, or 18 cents per share, compared with $15.3 million, or 54 cents per share, a year ago.

However, the company’s revenue increased 3.2 percent to $370.8 million. Amedisys’ results included a loss of $1 million, or 4 cents per share, from discontinued operations, such as closing three home nursing centers.

Without that charge, Amedisys had net income of $6.5 million, or 22 cents per share, results that fell in line with stock analysts’ forecasts. Analysts surveyed by Thomson Reuters expected earnings of 22 cents per share on revenue of $366.7 million.

In a note to investors, Kevin Ellich, a senior research analyst at Piper Jaffray & Co., said Amedisys’ results were mostly in line with Wall Street’s consensus.

Same-store performance in home health centers continued to fall, while existing hospice centers’ revenue increased by 17 percent, Ellich said in the note.

Earnings per share was in line with Wall Street estimates, while Amedisys’ revenue of $370.8 million was a little better than analysts’ consensus.

Ellich said the stock could increase in price, although the declining home health admissions over the past 15 months do not bode well for future revenue growth from home health visits.

Amedisys shares closed Tuesday at $13.42, down $1.26.

During a conference call with stock analysts, Amedisys Chief Executive Officer William F. Borne said the company expects that the pressure on Medicare payments, cut this year and last year, will continue next year.

Medicare accounts for more than 80 percent of Amedisys’ revenue.

Borne said the company’s first-quarter results met expectations, and Amedisys is on track to meet its plans for the year.

Amedisys reaffirmed its 2012 earnings guidance, with earnings per share ranging from 95 cents to $1.10 on revenue of $1.475 billion to $1.525 billion. The projections do not include the effects of any share repurchases, one-time costs or charges, or changes in Medicare payments.

Analysts had forecast 2012 earnings of $1.01 per share.