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Ensign Group's (ENSG) Q2 Earnings Beat Estimates, Rise Y/Y

Zacks Equity Research
·3 mins read

The Ensign Group, Inc. ENSG delivered adjusted operating earnings of 78 cents per share in second-quarter 2020, surpassing the Zacks Consensus Estimate by 36.8%. Further, the bottom line improved 44.4% year over year.

The company’s results benefited from improved revenues.

Operational Update

Total revenues of $584.7 million increased 1.6% year over year in the reported quarter. This improvement was driven by a solid segmental performance at Transitional and Skilled Services. Moreover, the top line beat the Zacks Consensus Estimate by 2%.

Further, adjusted net income in the quarter under review was $43.1 million, up 99% from the prior-year quarter.

Total revenues in the Transitional and Skilled Services, the only reporting segment of the company, came in at $556.7 million, up 18.7% year over year. Notably, the segment accounted for 95.2% of the total revenues in the reported quarter.

However, total expenses increased 14% year over year to $529.3 million due to higher cost of services, plus general and administrative expenses.

The Ensign Group, Inc. Price, Consensus and EPS Surprise

The Ensign Group, Inc. Price, Consensus and EPS Surprise
The Ensign Group, Inc. Price, Consensus and EPS Surprise

The Ensign Group, Inc. price-consensus-eps-surprise-chart | The Ensign Group, Inc. Quote

Financial Update

The company exited the second quarter with $201.7 million of cash and cash equivalents, up 241% from the level at 2019 end.

As of Jun 30, 2020, long-term debt less current maturities was $143.8 million, down 55.8% from the level at 2019 end.

Net cash from operating activities for the first six months of 2020 stands at $174.1 million, up 229.7% year over year.

Dividend Update

Ensign Group paid out a quarterly cash dividend of 5 cents per share during the second quarter.

2020 Guidance

Following solid second-quarter results, the company raised its 2020 annual earnings guidance to $3-$3.10 per share, up from the prior expectation of $2.50-$2.58 per share.

It still expects its annual revenues in the band of $2.42-$2.45 billion.

Zacks Rank and Peer Releases

Ensign Group carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Of the medical sector players that already reported second-quarter results, earnings of UnitedHealth Group Inc. UNH, HCA Healthcare, Inc. HCA and Universal Health Services, Inc. UHS beat the respective Zacks Consensus Estimate.

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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
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