Piper Jaffray Raises PT following Almost Family's (AFAM) 'Better-Than-Expected' Q1

May 13, 2015 9:04 AM EDT
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Piper Jaffray reiterates a Neutral rating on Almost Family (NASDAQ: AFAM), and raised the price target to $38.00 (from $32.00), following "Better-than-expected" Q1 results. Adjusted EPS beat estimates by $0.04, coming to $0.51, while revenue increased 6.7% to $128M ( $8.1M higher than estimate).

Piper Jaffray analyst, Kevin Ellich, commented on the results, saying, "AFAM reported better-than-expected Q1 results on slightly higher revenues and stronger cost controls in VN due to better adherence to agency-level staffing standards which lowered labor costs and improved EPS by $0.08. The company also noted that case-mix changes and Medicare reimbursement rates under the 2015 final rule increased revenue y/y by $0.6M and EPS by $0.04. Collection delays continued for the personal care segment due to changes in billing requirements in Ohio and Tennessee and AFAM expects some improvement over the next few quarters. While we are encouraged by increased regulatory visibility and the long-term growth in demand for lower cost care
settings such as home health, we remain on the sidelines until we get better visibility on these collection and cash flow related issues. Maintain Neutral and raising PT to $38."

For an analyst ratings summary and ratings history on Almost Family click here. For more ratings news on Almost Family click here.

Shares of Almost Family closed at $37.36 yesterday.



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