Amedisys Inc. reported net earnings of $ 80.1 million, or $ 1.69 per share, for the second quarter on Wednesday as the company said its hospice segment fell short of expectations due to hiring difficulties due to the COVID pandemic is.
That’s earnings of $ 34.7 million, or $ 1.34 per share, for the second quarter of 2020.
Earnings adjusted for one-time charges were $ 2.43 per share.
The results exceeded Wall Street’s expectations. The average estimate from seven analysts surveyed by Zacks Investment Research was earnings of $ 1.64 per share.
The Baton Rouge-based home health care and hospice services company had sales of $ 564.2 million for the period, falling short of Street’s forecasts. Six analysts surveyed by Zacks expected $ 564.7 million.
Amedisys said it completed the previously announced purchase of Contessa Health, a Nashville-based health technology startup, which will enable the company to care for more complex patients at home.
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Amedisys has signed an agreement to acquire a Nashville-based healthcare technology startup that will enable the company to specialize in more complex p …
The company announced that it has expanded its credit facility, which will give Amedisys access to $ 1 billion through a term loan and revolver. This is a sign that the company is planning further acquisitions, said Paul Kusserow, chairman and chief executive officer.
Amedisys’ board of directors has approved a $ 100 million share buyback program that will be used opportunistically, said Kusserow.
Amedisys expects full year earnings in the range of $ 6.03 to $ 6.18 per share and revenue of $ 2.24 to $ 2.26 billion. The company revised the forecast based on the performance of the hospice segment. The problem stems from hiring and employee turnover issues caused by the pandemic.
“With our recent acquisition activity, we see a significant opportunity to expand our hospice segment, which has required us to invest in leadership roles and continue to hire clinical staff to support this future growth,” the company said.
Amedisys stock was down $ 2.81, or 1.1%, on Wednesday to close at $ 256.27. The share price has fallen by 13% since the beginning of the year.