Amedisys (AMED) Stock Forecast & Price Target

Amedisys Inc. reported a consolidated revenue of $598.1 million in 4Q24, reflecting a year-over-year growth of 4.8%, indicating steady demand across its service segments. Notably, the High Acuity Care segment experienced a substantial revenue increase of 37.3% year-over-year, highlighting its potential as a growth driver for the company. Additionally, while there were challenges with labor cost inflation, the growth in non-Medicare fee-for-service (MA) revenue at 19.4% year-over-year signals a robust expansion opportunity outside traditional Medicare frameworks.

Amedisys Inc. has reported a concerning trend in its financials, with a -3.9% year-over-year decline in Medicare revenues, reflecting challenges within its core Home Health segment, which is crucial for the majority of its revenue. Despite a slight revenue increase of 5.0% year-over-year in the Home Health Business Segment to $377.0 million, the adjusted EBITDA declined by -5.0% year-over-year, leading to a decreased EBITDA margin of 15.1%, down approximately 160 basis points from the previous year. Additionally, the company experienced a -7.5% miss on consolidated adjusted EBITDA, further exacerbated by declines in patient admissions and suboptimal performance in both Home Health and Hospice segments compared to forecasts.