Addus HomeCare's Earnings Delay: What It Means for Investors and the Home Care Sector

Ticker: ADUS | Date: February 27, 2020

In a twist that even the most seasoned finance analysts might not have seen coming, Addus HomeCare Corporation (Nasdaq: ADUS) announced it would postpone its fourth-quarter and year-end 2019 earnings release, along with the much-anticipated conference call. The company is now slated to host this call on March 18, 2020, at 9:00 AM Eastern Time. If you were hoping for a quick EPS surprise, you?ll have to wait a few more weeks.

The Reason Behind the Delay

The delay, according to the company, is due to the need for additional time to assess a non-cash implicit price concession related to revenue and accounts receivable. This isn?t just a casual pause; it?s a necessary step to ensure that all internal controls are up to snuff. It?s like the financial world?s version of double-checking your homework before turning it in.

What?s at Stake?

For the twelve-month period ending December 31, 2019, Addus anticipates reporting a revenue forecast indicating an increase of over 20% compared to the previous year. Notably, cash on hand is expected to be around $112 million, a robust jump from approximately $70 million in 2018. This is a significant figure and could suggest that despite the delay, the company is on solid financial footing. However, preliminary numbers can be as slippery as a greased pig at a county fair; they?re subject to change pending the filing of the Form 10-K.

Who?s Speaking on the Call?

During the upcoming call, the spotlight will shine on Dirk Allison, the President and CEO, alongside Brian Poff, the Executive Vice President and CFO. They?ll undoubtedly face questions about how the postponement will affect the EPS consensus and what it means for investors moving forward. Given the buzz around this delay, we can expect some lively discussions, possibly even some spirited debates.

Industry Implications

This delay could signal a shift in the home care sector?s dynamics, especially as companies navigate the complexities of revenue recognition in a changing regulatory landscape. For peers in the industry, it?s a reminder of how crucial it is to maintain rigorous internal controls and to be prepared for the unexpected. After all, in finance?as in life?reality often has a way of throwing curveballs.

Looking Ahead

As we await the March earnings call, the anticipation is almost palpable. Will Addus HomeCare deliver an earnings surprise that exceeds the current EPS consensus? Or will the delay leave investors feeling a bit like they?ve been left at the altar? Only time will tell. But one thing?s for sure: the home care sector is closely watching, and so are we.