Home health and hospice services provider Amedisys, Inc. (AMED) reported Tuesday an increase in third-quarter profit, helped by a nearly 21% growth in service revenues. The company also reaffirmed its outlook for fiscal 2009.
For the third quarter, net income attributable to Amedisys rose to $35.94 million or $1.29 per share from $23.49 million or $0.87 per share in the previous year.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $1.27 per share for the third quarter. Analysts' estimate typically exclude special items.
Operating income improved to $60.73 million from $43.64 million in the corresponding period of fiscal 2008.
Net service revenue for the quarter surged 20.7% to $388.26 million from $321.56 million, attributed to growth through base/start-up agencies. Fourteen analysts were expecting revenue of $384.44 million in the third quarter.
For the nine-month period, net income advanced to $98.04 million or $3.55 per share from $60.34 million or $2.25 per share in fiscal 2008. Service revenue grew 30.8% to $1.11 billion from $847.32 million.
Looking ahead, for the full year, the company maintained its earlier earnings guidance range of $4.75 - $4.90 per share. Amedisys also reiterated its revenue outlook of $1.475 billion - $1.500 billion, excluding the effects of any future acquisitions. Analysts are currently looking for earnings of $4.86 a share on revenue of $1.50 billion for the year.
AMED is currently trading at $41.21, down $1.90 or 4.41%, on the NASDAQ.
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