Amedisys Inc. on Wednesday reported second-quarter net income of $80.1 million, or $1.69 per share, as the company said its hospice segment fell short of expectations due to hiring difficulties caused by the COVID pandemic.
That’s up from $34.7 million in earnings, or $1.34 per share, during the second quarter of 2020.
Earnings, adjusted for non-recurring costs were $2.43 per share.
The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.64 per share.
The Baton Rouge-based home health care and hospice services provider posted revenue of $564.2 million in the period, missing Street 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 allow the company to take care of more complex patients in their homes.
The company announced it expanded its credit facility, giving Amedisys access to $1 billion via a term loan and revolver. This is a sign the company plans to do more acquisitions, said Paul Kusserow, chairman and chief executive officer.
The Amedisys board of directors has approved a $100 million stock buy-back program, which will be used opportunistically, Kusserow said.
Amedisys expects full-year earnings in the range of $6.03 to $6.18 per share, with revenue in the range of $2.24 billion to $2.26 billion. The company revised the forecast, based on the hospice segment's performance. The problem is due to hiring and employee turnover issues caused by the pandemic.
“With our recent acquisition activity, we believe that there is a significant opportunity to grow our hospice segment, which has required us to invest in leadership and continue to hire clinical employees to support this future growth,” the company said.
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