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Ensign Group (ENSG) Down 4.2% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Ensign Group (ENSG - Free Report) . Shares have lost about 4.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ensign Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Ensign Group's Q2 Earnings In Line, Increase Y/Y
Ensign Group delivered adjusted operating earnings of 83 cents per share in second-quarter 2021, matching the Zacks Consensus Estimate. The bottom line improved 13.7% year over year.
Results benefited from a healthy revenue stream. The company also gained from continued improvements in census and managed care skilled mix across the portfolio along with better operational expense management.
Operational Update
Total operating revenues of $639 million increased 9.2% year over year in the reported quarter. However, the top line missed the Zacks Consensus Estimate by 1.5%.
Adjusted net income in the quarter under review was $50.9 million, up 18% from the prior-year quarter’s level.
Same-store revenues increased 4.2% year over year while transitioning skilled revenues rose 7.4% year over year.
Real estate segment reported rental revenues of $16 million in the second quarter, up 6.8% year over year. Skilled services revenues came in at $612.9 million, up 10.1% year over year.
On the flip side, total expenses increased 8.4% year over year to $573.7 million due to higher cost of services, rent – cost of services, and general and administrative expense.
Financial Update
The company exited the second quarter with $198.4 million of cash and cash equivalents, down 16.1% from the level at 2020 end.
As of Jun 30, 2021, long-term debt less current maturities was $111.2 million, down 1.1% from the level at 2020 end.
Net cash provided by operating activities at the end of second-quarter 2021 summed $108.4 million, down 37.8% year over year.
Dividend Update
Ensign Group paid out a quarterly cash dividend of 5.25 cents per share during the quarter.
2021 Guidance
Following solid second-quarter results, the company raised its current-year earnings projection to $3.55-$3.67 from the previous outlook of $3.54-$3.66 per share.
It still expects annual revenues in the band of $2.62-$2.69 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Ensign Group has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, Ensign Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Ensign Group (ENSG) Down 4.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Ensign Group (ENSG - Free Report) . Shares have lost about 4.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ensign Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Ensign Group's Q2 Earnings In Line, Increase Y/Y
Ensign Group delivered adjusted operating earnings of 83 cents per share in second-quarter 2021, matching the Zacks Consensus Estimate. The bottom line improved 13.7% year over year.
Results benefited from a healthy revenue stream. The company also gained from continued improvements in census and managed care skilled mix across the portfolio along with better operational expense management.
Operational Update
Total operating revenues of $639 million increased 9.2% year over year in the reported quarter. However, the top line missed the Zacks Consensus Estimate by 1.5%.
Adjusted net income in the quarter under review was $50.9 million, up 18% from the prior-year quarter’s level.
Same-store revenues increased 4.2% year over year while transitioning skilled revenues rose 7.4% year over year.
Real estate segment reported rental revenues of $16 million in the second quarter, up 6.8% year over year. Skilled services revenues came in at $612.9 million, up 10.1% year over year.
On the flip side, total expenses increased 8.4% year over year to $573.7 million due to higher cost of services, rent – cost of services, and general and administrative expense.
Financial Update
The company exited the second quarter with $198.4 million of cash and cash equivalents, down 16.1% from the level at 2020 end.
As of Jun 30, 2021, long-term debt less current maturities was $111.2 million, down 1.1% from the level at 2020 end.
Net cash provided by operating activities at the end of second-quarter 2021 summed $108.4 million, down 37.8% year over year.
Dividend Update
Ensign Group paid out a quarterly cash dividend of 5.25 cents per share during the quarter.
2021 Guidance
Following solid second-quarter results, the company raised its current-year earnings projection to $3.55-$3.67 from the previous outlook of $3.54-$3.66 per share.
It still expects annual revenues in the band of $2.62-$2.69 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Ensign Group has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, Ensign Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.