ADUS - Addus: Strong Organic Growth Thanks To Rate Boost

Thesis

Addus HomeCare (ADUS) posted a strong quarter of organic revenue growth. While the company has consistently guided for 3-5% same-store sales growth, that figure hit 7.7% this quarter.

Addus operates in a highly regulated government healthcare market, Personal Care Services ((PCS)). Its PCS solutions are provided primarily to Medicaid recipients. The company's largest Medicaid business is in Illinois. In Q3, a rate increase by Illinois Medicaid Managed Care Organizations (MCOs) was the primary source of same-store revenue growth for the company's PCS business.

Addus has a strong and growing presence in the

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