Amedisys Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of home health company Amedisys (NAS: AMED) fell as much as 19% today after the company released earnings and outlook.

So what: Revenue fell to $373.7 million, from $422.3 million last year, as regulatory changes hit the company harder than expected. Adjusted earnings per share were $0.67; just a penny short of estimates, but revenue and a weak forecast was enough to send shares tumbling.

Now what: For the full year, management expects revenue to be between $1.47 billion and $1.5 billion while earnings should be between $2.20 and $2.40 per share. Both numbers are down significantly from just three months ago when the company gave guidance showing how quickly conditions were deteriorating. I don't see a lot to be excited about today and would shy away from shares until we get some more clarity about the long-term prospects of the company.

Interested in more info on Amedisys? Add it to your watchlist.

At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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