Amedisys Shrugs Off Obama Concerns

Zachary Scheidt submits:

Amedisys, Inc. (AMED) is trading higher this week after a healthy earnings report. The company beat analyst expectations by two cents reporting EPS of $0.99 on revenue of $341.8 million. Both figures were up 60% compared to the first quarter of 2008. While much of the revenue increase was due to acquisitions, the increase in profit was largely due to lower General and Administrative expenses as well as a decline in interest expense.

On top of a good historical report, management gave an encouraging picture of the current economic climate. Specifically, it looks like industry lobbying efforts may be making progress in regards to the 2010 budget. Management believes that Congress can reach a bipartisan agreement on the budget that will not include a cut to Medicare. This would certainly give mutual fund managers

who own the stock some confidence, and could cause problems for hedge fund managers who may be short due to concerns over a potential cut in reimbursements.

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