Mednax (MD) to Post Q4 Earnings: Here's What You Need to Know
Mednax, Inc. MD is set to report fourth-quarter 2021 results on Feb 17, before the opening bell.
Thanks to a rise in patient volume and reduced operating expenses, the leading pediatric care service provider reported third-quarter adjusted earnings per share of 46 cents, beating the Zacks Consensus Estimate of 42 cents. Accelerated net acquisition activity benefited the company’s same-unit sales figure.
Let’s see how things have shaped up prior to the fourth-quarter earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings per share of 44 cents suggests a 76% increase from the prior-year figure of 25 cents. The consensus estimate for fourth-quarter revenues of $484 million indicates a 16.2% increase from the year-ago reported figure.
Mednax beat the consensus estimate for earnings in three of the prior four quarters and missed once, with the average being 18.6%. This is depicted in the graph below:
MEDNAX, Inc. Price and EPS Surprise
MEDNAX, Inc. price-eps-surprise | MEDNAX, Inc. Quote
Factors to Note
The Zacks Consensus Estimate for growth in same-unit revenues attributable to patient volume is pegged at 10.2% year over year. The consensus estimate for same-unit revenues indicates a 13.7% rise year over year. This might have benefited from net acquisition activity and boosted Mednax’s fourth-quarter performance.
Furthermore, the Zacks Consensus Estimate for neonatal intensive care unit (NICU) days for the fourth quarter indicates a 13.5% year-over-year rise. This might have benefited the bottom line. Also, MD’s continuous focus on telehealth, which gained a substantial response amid the COVID-19 environment, is likely to have aided its quarterly performance. Demand for telemedicine is expected to continue, given its efficiency and popularity.
General and administrative expenses for the fourth quarter are expected to be in line to down from the third-quarter level of $66.9 million. Yet, rising practice salaries and benefits, and practice supplies and other operating expenses might have increased in the fourth quarter. This is likely to have partially offset the positives mentioned above, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Mednax this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 44 cents per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Mednax currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Mednax, here are some companies from the Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Vir Biotechnology, Inc. VIR has an Earnings ESP of +32.05% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vir Biotechnology’s bottom line for the to-be-reported quarter suggests an increase of 413.3% year over year.
Moderna, Inc. MRNA has an Earnings ESP of +3.28% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Moderna’s earnings per share for the to-be-reported quarter is pegged at $9.83 per share, implying a massive improvement from the year-ago loss of 69 cents.
Clover Health Investments, Corp. CLOV has an Earnings ESP of +12.66% and is a Zacks #3 Ranked player.
The consensus estimate for Clover Health Investments’ bottom line for the to-be-reported quarter has improved 7.1% in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Moderna, Inc. (MRNA) : Free Stock Analysis Report
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Clover Health Investments, Corp. (CLOV) : Free Stock Analysis Report
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