UPDATE: Piper Jaffray Maintains Neutral on Amedisys After Disappointing Earnings Report

In a report published by Piper Jaffray, analyst Kevin K. Ellich maintained his Neutral rating and lowered the price target on Amedisys AMED from $12 to $10. Piper Jaffray reported that, “Revenues decreased 2.0% y/y to $362.9 MM, which was lower than our estimate and consensus of $373 MM. Adjusted EBITDA decreased 35.1% y/ y to $23.3 MM, which was roughly in-line with our estimate of $22.9 MM, while EBITDA margin declined 326 bps y/y and 23 bps sequentially to 6.41%, which was 27 bps higher than our projection of 6.15%. Adjusted EPS of $0.23 was $0.02 higher than our estimate of $0.21 and a penny higher than consensus of $0.22. The change in AMED's contract with Humana had a negative $0.06 impact. Operating cash flow was $12.6 MM in the quarter, while DSO was 41 days, which is up from 35 days in 4Q11. The uptick in DSO was primarily attributable to converting Hospice centers to the company's point-of-care technology which slowed billings. Hospice avg. length of stay increased to 105 days from 93 in 4Q11.” Shares of Amedisys closed at $11.07 on Tuesday.