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Ensign Group's (ENSG) Q3 Earnings Beat Estimates, Rise Y/Y

Zacks Equity Research
·3 min read

The Ensign Group, Inc. ENSG delivered adjusted operating earnings of 78 cents per share in third-quarter 2020, surpassing the Zacks Consensus Estimate by 8.3%. Further, the bottom line improved 41.8% year over year.

The company’s results benefited from revenues.

Operational Update

Total revenues of $599 million increased 17% year over year in the reported quarter. However, he top line missed the Zacks Consensus Estimate by 0.2%.

Further, adjusted net income in the quarter under review was $43.7 million, up 94.5% from the prior-year quarter.

Total revenues in the Transitional and Skilled Services, the only reporting segment of the company, came in at $570.3 million, up 17.4% year over year. Notably, the segment accounted for 95% of the total revenues in the reported quarter.

However, total expenses increased 13.1% year over year to $544 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 third quarter with $175.4 million of cash and cash equivalents, up 196.4% from the level at 2019 end.

As of Sep 30, 2020, long-term debt less current maturities was $113.2 million, down 65.2% from the level at 2019 end.

Net cash from operating activities for the first nine months of 2020 summed $282.2 million, up 158.7% year over year.

Dividend Update

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

2020 and 2021 Guidance

Following solid third-quarter results, the company raised its 2020 annual earnings guidance to $3.04-$3.12 per share, up from the prior expectation of $3-$3.10.

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

Management also provided its 2021 outlook. It expects annual EPS from $3.44 to $3.56 while annual revenues are projected between $2.62 billion and $2.69 billion.

Zacks Rank and Peer Releases

Ensign Group carries a Zacks Rank #2 (Buy), 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 third-quarter results, the bottom-line results of UnitedHealth Group Incorporated UNH and Centene Corporation CNC beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. HCA missed the same.

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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
 
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