AmSurg Corp’s (AMSG) fourth quarter EPS of $0.43 surpassed the Zacks Consensus Estimate by a penny and $0.41 in the year-ago period. The company is witnessing several challenges in the near-term, which are reflected in the 2011 outlook.
Moreover, the prevailing economic uncertainty is impacting AmSurg by deferring elective procedures, which in turn mounts pressure on the same center revenues. Additional challenges include higher interest and tax expenses as well as the impact of reimbursement rate.
Although the industry dynamics remain strong, viewing these challenges, we have lowered our revenue and earnings estimates for 2011 and downgraded the stock to Underperform.
AMSURG CORP (AMSG): Free Stock Analysis Report
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