U.S. Markets open in 4 hrs 20 mins
  • S&P Futures

    3,778.00
    -43.25 (-1.13%)
     
  • Dow Futures

    30,721.00
    -278.00 (-0.90%)
     
  • Nasdaq Futures

    11,526.25
    -164.75 (-1.41%)
     
  • Russell 2000 Futures

    1,700.10
    -21.30 (-1.24%)
     
  • Crude Oil

    109.94
    +0.16 (+0.15%)
     
  • Gold

    1,816.70
    -0.80 (-0.04%)
     
  • Silver

    20.69
    -0.04 (-0.21%)
     
  • EUR/USD

    1.0443
    -0.0001 (-0.0104%)
     
  • 10-Yr Bond

    3.0930
    0.0000 (0.00%)
     
  • Vix

    29.42
    +1.06 (+3.74%)
     
  • GBP/USD

    1.2140
    +0.0017 (+0.1432%)
     
  • USD/JPY

    136.1860
    -0.3590 (-0.2629%)
     
  • BTC-USD

    19,193.92
    -820.61 (-4.10%)
     
  • CMC Crypto 200

    412.41
    -27.25 (-6.20%)
     
  • FTSE 100

    7,201.40
    -110.92 (-1.52%)
     
  • Nikkei 225

    26,393.04
    -411.56 (-1.54%)
     

Mednax's (MD) Q4 Earnings Surpass Estimates, Increase Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Mednax, Inc. MD reported fourth-quarter 2021 adjusted earnings of 50 cents per share, which outpaced the Zacks Consensus Estimate by 21.9%. The bottom line improved 127.3% year over year.

MD’s results gained momentum from improved revenues and a rise in patient volume.

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 Update

Mednax’s revenues rose 3% year over year to $499 million in the fourth quarter, courtesy of higher patient volumes. The top line beat the consensus mark by 19.6%.

Same-unit revenues increased 17.6% year over year, benefited by net acquisition activity. Same-unit revenues attributable to patient volume improved 6.3% year over year.

Total operating expenses increased 12% year over year to $430.5 million in the quarter under review due to higher practise salaries and benefits, practise supplies and operating expenses plus general and administrative expenses.

General and administrative expenses of $59 million increased 7.9% year over year.Mednax’s interest expense slumped 39.2% year over year to $16.6 million as a result of redemption of its 5.25% senior notes with an outstanding principle amount of $750 million due 2023.

In the fourth quarter, adjusted EBITDA of $81 million increased 39% year over year.

2022 Outlook

On a preliminary basis, MD expects its 2022 Adjusted EBITDA to be at least $270 million.

Financial Update (as of Dec 31, 2021)

MD exited the fourth quarter of 2021 with cash and cash equivalents of $387 million, which plunged from the 2020-end level of $1.12 billion.

Total assets of $2.72 billion decreased 20.7% from the figure at 2020 end.

Mednax’s total debt amounted to $1 billion, which plunged 42.4% from the figure as of Dec 31, 2020.

Cash flow generated from operating activities totaled $75 million in the fourth quarter, which declined 8.8% year over year.

The quarter also saw that Mednax has no outstanding borrowings under its revolving credit facility size of $600 million.

Ful-Year Update

Revenues for the year increased 10.4% year over year to $1.91 billion. Adjusted EBITDA for 2021 also improved 20.7% from the 2020 reported figure. For the year ended Dec 31, 2021, MD reported an Adjusted EPS of $1.63, up 71.6% year over year.

Zacks Rank

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

Other Medical Sector Releases

Among other players from the medical space that have reported fourth-
quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated UNH, Tenet Healthcare Corporation THC beat respective estimates, while HCA Healthcare, Inc. HCA missed the same.

UnitedHealth reported fourth-quarter 2021 earnings of $4.48 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 77.8% year over year on revenue growth.

Tenet Healthcare reported fourth-quarter 2021 adjusted net earnings of $2.70 per share, which surpassed the Zacks Consensus Estimate and rose year over year, both by 73.1%. THC’s results gained from reduced expenses and operational excellence.

HCA Healthcare's fourth-quarter 2021 adjusted earnings of $4.42 per share missed the Zacks Consensus Estimate by 2.9%. However, the bottom line improved 7% year over year on higher revenues.

HCA witnessed solid patient volumes in the quarter.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report

Tenet Healthcare Corporation (THC) : Free Stock Analysis Report

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

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

To read this article on Zacks.com click here.

Zacks Investment Research