The Ensign Group, Inc ENSG
delivered adjusted operating earnings of 52 cents per share,
beating the Zacks Consensus Estimate by 10.6%. Moreover, the metric
soared 53% year over year. The upside is mainly driven by segmental
performances.
Net income for the quarter under review was $26 million, up 135.3%
year over year.
Operational Update
Total revenues of $538 million increased 10.2% year over year in
the reported quarter and also beat the Zacks Consensus Estimate by
2.3%. This upside was backed by solid segmental performances.
Total Transitional and Skilled Services segment
income was $55.2 million for the quarter under consideration, up
38.2% from the prior-year period.
Total Assisted and Independent Living Services segmentâs revenues
were up 12.9% year over year to $40.5 million.
Segmental revenues at Total Home Health and Hospice Services were
up 11.3% to $44.2 million.
Total expenses rose 9% year over year to $503 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. Quote
Quarterly Segment Update
Transitional and Skilled Services
This segment generated revenues of $441.7 million, up 9.4% year
over year. Notably, the segment accounted for 82.1% of total
revenues in the reported quarter.
Assisted and Independent Living Services
This segment generated operating revenues of $40.5 million, up
12.9% year over year with the segment contributing 7.5% to the
companyâs top line.
Home Health & Hospice Services
For this segment, total operating revenues were $44 billion, up
11.4% year over year. The same represented 8.2% to the total
revenues.
Other Services
This segment delivered revenues of $11.4 million, surging 32% from
the prior-year quarter. This segment reflected 2.2% of the total
revenue base.
Financial Update
Total cash and cash equivalents declined 25% to $31 million from
the year-end 2017 level.
As of Dec 31, 2018, long-term debt less current maturities was $233
million, down 23% from the level at 2017 end.
Cash from operations in the first nine months of 2018 was $210
million, up 188% year over year.
Dividend Update
Ensign Group paid a quarterly cash dividend of 4.8 cents per share
during the fourth quarter. The company has been hiking its dividend
for the last 16 years.
2019 Outlook
Management now expects earnings in the range of $2.17-$2.26 per
share, lower than the Zacks Consensus Estimate of $2.35. It also
anticipates annual revenues between $2.29 billion and $2.35
billion.
Zacks Rank
Ensign Group carries a Zacks Rank #3 (Hold). You can see
the complete list of todayâs Zacks #1 Rank (Stock Buy)
stocks here.
Upcoming Releases From Medical
Sector
Some stocks worth considering from the medical sector are as
follows:
Constellation Pharmaceuticals, Inc. CNST is set to report
fourth-quarter 2018 earnings performance on Feb 14. The stock has
an Earnings ESP of +9.72% and a Zacks Rank of 2.
Tenet Healthcare Corporation THC is slated to announce
fourth-quarter earnings on Feb 25. The company has an Earnings ESP
of +5.63% and a Zacks Rank of 3.
Alder BioPharmaceuticals, Inc. ALDR has an Earnings ESP of +13.52%
and a Zacks Rank #2 (Buy). The company is scheduled to release
fourth-quarter earnings on Feb 25.
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