Addus Home Care disappointed Wall Street analysts in the second quarter, despite growing revenues 8.7% for the quarter. The company earned $.91 a diluted share for the quarter on revenues of $236.9 million. That compares to $0.90 a share on revenues of $217.9 during the same period last year. Analysts forecast the company would earn $0.92 a share during the second three months of the year.
Addus Chairman and CEO Dirk Allison said the company’s home care services improved in the second quarter after being buffeted by the omicron variant of the COVID-19 virus in the first three months of the year. Still, he acknowledged the company faces other headwinds.
“We were also pleased to see improved labor trends in our personal care segment, but like most healthcare providers, we continue to face a tight labor market for clinical staff in our home health and hospice segments,” Allison said in a statement. “We are particularly encouraged by positive initial results from our efforts to implement new caregiver hiring and retention strategies in personal care, our largest segment.”
The company said admissions in home health services have improved, but the hospice segment remains a challenge and is making only incremental improvements.
Although the company eased up on acquisitions in the latter half of last year, Allison said it remains focused on growing the business both organically and through acquisitions, especially in states where the company already has a presence.
“We continue to have a robust pipeline of acquisition opportunities,” Allison continued. “We remain well-capitalized and have the flexibility to pursue acquisitions that meet our criteria in all our service lines.”
The company will be releasing further details of the second quarter Tuesday during a conference call with analysts.
Information in this story has been updated from the original version.
