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MEDNAX's (MD) Q1 Earnings Surpass Estimates, Decline Y/Y

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MEDNAX, Inc. MD reported first-quarter 2021 adjusted earnings of 24 cents per share, which beat the Zacks Consensus Estimate of 15 cents by a whopping 60% on the back of lower costs. However, the bottom line plunged 25% year over year due to soft revenues.

The COVID-19 pandemic continued to adversely impact the company’s patient volumes and revenues, which in turn, dragged its results.

MEDNAX, Inc. Price, Consensus and EPS Surprise

MEDNAX, Inc. Price, Consensus and EPS Surprise
MEDNAX, Inc. Price, Consensus and EPS Surprise

MEDNAX, Inc. price-consensus-eps-surprise-chart | MEDNAX, Inc. Quote

Quarterly Details

The company generated revenues of $447 million, which beat the Zacks Consensus Estimate by 2.5%. The top line, however, slumped 47.2% from the year-ago period. This was due to dented patient volumes stemming from the pandemic.

Same unit revenues were up 2.5% year over year.

General and administrative expenses decreased 1.3% year over year to $66.5 million on the back of stock-based compensation and salary decreases from net staffing reductions.

Total operating expenses dipped 2.3% year over year to $420.6 million on the back of lower practise supplies and other operating expenses, lower general and administrative expenses, and to a large extent, lower transformational and restructuring-related expenses.

Interest expense of the company declined 36.2% on the back of its redemption of $750-million outstanding principle amount of 5.25% senior notes due 2023.

In the quarter under review, adjusted EBITDA totalled $45.5 million, up 37.5% year over year.

Financial Update

As of Mar 31, 2021, the company had cash and cash equivalents of $270 million, which decreased 76% from the level as of Dec 31, 2020.

The company’s total debt, net of $1 billion, was down 42.7% from the level at 2020 end while total assets worth $2.4 billion dropped 25.8% from the last-year end.

Cash flow used in operating activities was $98.9 million in the quarter under review, compared with $153 million in first-quarter 2020.

Zacks Rank

MEDNAX currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Medical Sector Releases

Of the medical sector players that have reported first-quarter results so far, the bottom-line results of Community Health Systems, Inc. CYH, HCA Healthcare, Inc. HCA and Tenet Healthcare Corp. THC beat their respective Zacks Consensus Estimate.

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Community Health Systems, Inc. (CYH) : Free Stock Analysis Report

Tenet Healthcare Corporation (THC) : Free Stock Analysis Report

HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report

MEDNAX, Inc. (MD) : Free Stock Analysis Report

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