Addus HomeCare (NasdaqGS:ADUS) Q3 Earnings: What Can You Ex…

Addus HomeCare (NasdaqGS:ADUS) Q3 Earnings: What Can You Ex…


Addus HomeCare Corporation (NasdaqGS:ADUS) is scheduled to report Q3 earnings results after markets close for trading on November 2, 2020.

The company is expected to report earnings of $0.65/share on revenue of $189 million. The consensus earnings per share (EPS) of $0.65/share is based on a poll of 8 analysts and represents a growth in eps of 5.4% over the same quarter last year, when the company reported earnings of $0.62/share.

The revenue forecast of $189 million based on a poll of 9 analysts implies a year-over-year (YoY) growth in revenue of 11.3%. Last year the company reported $169.8 million in revenue for the quarter.

Expected to report EPS growth of 5.4% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $189.03 $169.80 11.3%
EPS $0.65 $0.62 5.4%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from Addus HomeCare Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.48 $0.73 51.4% Beat
Q1, 2020 $0.59 $0.77 31.5% Beat
Q4, 2019 $0.65 $0.73 12.3% Beat
Q3, 2019 $0.57 $0.62 9.4% Beat
Q2, 2019 $0.53 $0.56 6.2% Beat
Q1, 2019 $0.46 $0.52 13.0% Beat
Q4, 2018 $0.49 $0.55 11.6% Beat
Q3, 2018 $0.44 $0.48 8.8% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 2.7%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 10, 2020 $99.30 $101.98 2.7% Increase
May 4, 2020 $80.45 $88.65 10.2% Increase
March 17, 2020 $53 $65.57 23.7% Increase
November 4, 2019 $86.68 $85.92 −0.9% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.67, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.67 implies a 0.4% chance of earnings manipulation.

Fundamentals And Technical Analysis

Addus HomeCare Corporation is currently trading at $100.98/share, down −0.2% for the day. The company is trading at approximately 94.4% of its 52-week high of $106.98/share. The company’s stock price is down −1.0% since the last earnings report and up 0.1% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 57.44 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:ADUS Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 49.72 and a forward P/E multiple of 33.74.

Addus HomeCare Corporation’s current share price also implies a price-to-book (P/B) multiple of 3.19. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $100.98
P/E Ratio 49.7x
P/E Ratio (Fwd) 33.7x
PEG Ratio 0.9
Total Debt / Total Capital 4.8%
Levered Free Cash Flow $59.517 million
EV / EBITDA 25.2x

Finbox

Addus HomeCare Corporation is a small-cap stock with a market capitalization of $1.58 billion and a total enterprise value of $1.502 billion. The company operates in the Healthcare sector and the Healthcare Providers & Services industry.

Addus HomeCare Corporation provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. It operates in three segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living. This segment’s services include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. The Hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. The Home Health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization. The company’s payor clients include federal, state, and local governmental agencies; managed care organizations; commercial insurers; and private individuals. As of June 30, 2020, the company served consumers through 190 offices located in 25 states. Addus HomeCare Corporation was founded in 1979 and is based in Frisco, Texas.


Moving & Transportation Services Jonathan Cartu Transportor

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