LHC Group (LHCG) Tops Q4 EPS by 2c, Revenues Miss; Offers Q1 EPS/Revenue Guidance Below Consensus, FY20 Revenue Outlook Below Consensus

LHC Group (NASDAQ: LHCG) reported Q4 EPS of $1.15, $0.02 better than the analyst estimate of $1.13. Revenue for the quarter came in at $531.3 million versus the consensus estimate of $545.62 million.

Fourth Quarter of 2019 Financial Results – Strong Organic Growth by LHC Group Legacy Home Health and Hospice and Continued Sequential Improvement at Almost Family Locations

• Net service revenue increased 4.2% to $531.3 million.
• Net income attributable to LHC Group’s common stockholders increased 5.8% to $21.8 million. Earnings per diluted share attributable to LHC Group’s common stockholders increased 6.1% to $0.70, which includes the effect of costs and expenses described within the adjusted results below.
• Adjusted net income attributable to LHC Group’s common stockholders increased 12.0% to $35.9 million. Adjusted earnings per diluted share attributable to LHC Group’s common stockholders increased 11.7% to $1.15.
• Adjusted EBITDA increased 2.9% to $53.3 million.
• Adjusted results for the fourth quarter of 2019 exclude transaction and other transition related costs and expenses as well as charges and expenses related to certain closures and relocations, PDGM preparedness, departure of our former President and Chief Operating Officer and certain dispute settlements in the aggregate amount of $14.1 million after tax, or $0.45 per diluted share.
• Organic growth in home health admissions was 10.3%, excluding Almost Family locations.
• Organic growth in home health revenue was 4.2%, excluding Almost Family locations.
• Organic growth in hospice admissions was 4.6%, excluding Almost Family locations.
• Organic growth in hospice revenue was 5.0%, excluding Almost Family locations.

Commenting on the results, Keith G. Myers, LHC Group’s Chairman and Chief Executive Officer, said, “We maintained a high level of discipline and preparedness throughout 2019 as we readied LHC Group and our 32,000 employees to thrive under PDGM with extensive design, development, piloting, testing and training. With Almost Family, we executed a similar approach and a healthy dose of strategic patience to ensure those locations were operationally sound, quality scores were improved and overall on a solid footing in order to drive more aggressive growth in 2020. While these preparation head winds were heavier in the fourth quarter, we are confident that we are well positioned for success in 2020. We saw the early results from this strategy with over 5% combined organic growth in the fourth quarter and a combined organic growth rate nearly double that amount to date in the first quarter of 2020.”

GUIDANCE:

LHC Group sees Q1 2020 EPS of $0.70-$0.80, versus the consensus of $0.97. LHC Group sees Q1 2020 revenue of $500-510 million, versus the consensus of $539.28 million.

LHC Group sees FY2020 EPS of $4.60-$4.80, versus the consensus of $4.74. LHC Group sees FY2020 revenue of $2.13-2.18 billion, versus the consensus of $2.24 billion.

For earnings history and earnings-related data on LHC Group (LHCG) click here.

You May Also Be Interested In

• Sandisk targets mid-to-high teens revenue growth through FY2030
• CorMedix (CRMD) Tops Q2 EPS by 6c; Offers Guidance
• Ideal Power (IPWR) Tops Q2 EPS by 2c