We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ensign Group (ENSG) Down 2.9% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Ensign Group (ENSG - Free Report) . Shares have lost about 2.9% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Ensign Group Meets Q2 Earnings Estimates
Ensign Group reported second-quarter 2022 adjusted operating earnings of $1.01 per share, which matched the Zacks Consensus Estimate. The bottom line improved 13.5% year over year.
Operating revenues of ENSG rose 14.7% year over year to $732.5 million. Growth can be attributed to better service and rental revenues. The top line outpaced the consensus mark by a whisker.
Quarterly results benefited from a consistent improvement in same-store and transitioning occupancy, skilled revenues and managed care revenues. Nevertheless, the upside was partly offset by an elevated expense level induced mainly by the rising cost of services.
Adjusted net income advanced 12.9% year over year to $57.4 million.
Same-store occupancy grew 1.8% year over year, while transitioning occupancy increased 6.4% year over year in the quarter under review. Same-store and transitioning managed care revenues improved 6% and 29.1%, respectively, on a year-over-year basis.
Total expenses of $654.3 million escalated 14% year over year due to increased cost of services, rent-cost of services, general and administrative expenses, and depreciation and amortization.
Segmental Update
Skilled Services: Revenues of $702.5 million climbed 14.6% year over year in the second quarter. Segment income of $102.3 million rose 13.6% year over year.
As of Jun 30, 2022, skilled nursing operations and campus operations of the segment totaled 215 and 25, respectively.
Standard Bearer: Revenues amounted to $17.6 million, which advanced 23.8% year over year in the quarter under review. Segment income dropped 13.5% year over year to $6.8 million.
Funds from Operations (FFO) came in at $12.1 million, which dipped 0.8% year over year.
Financial Update (as of Jun 30, 2022)
Ensign Group exited the second quarter with cash and cash equivalents of $285.6 million, which increased 8.9% from the figure at 2021 end. ENSG had an available capacity of $593.3 million under its credit facility at the end of the quarter.
Total assets of $3.1 billion climbed 9.6% from the 2021-end level.
Long-term debt-less current maturities came in at $151.1 million, down 1.2% from the figure as of Dec 31, 2021.
During the six months ended Jun 30, 2022, net cash provided by operating activities of $129.8 million improved 19.8% from the prior-year comparable period’s level.
Capital-Deployment Update
Ensign Group bought back shares worth around $20 million during the second quarter, completing the $20-million share buyback program authorized in Feb 2022.
ENSG paid out a quarterly cash dividend of 5.5 cents per share in the quarter under review.
2022 Guidance
Ensign Group hiked the full-year outlook for revenues and EPS.
EPS is currently anticipated within $4.05-$4.15, up from the prior guidance of $4.01-4.13. The midpoint of the revised guidance indicates 13% growth from the 2021 reported figure.
Revenues are forecast between $2.96 billion and $3 billion in 2022, higher than the previous outlook of $2.93-$2.98 billion. The midpoint of the updated guidance suggests a rise of 14.6% from the reported figure of 2021.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Ensign Group has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ensign Group has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ensign Group (ENSG) Down 2.9% 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 2.9% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Ensign Group Meets Q2 Earnings Estimates
Ensign Group reported second-quarter 2022 adjusted operating earnings of $1.01 per share, which matched the Zacks Consensus Estimate. The bottom line improved 13.5% year over year.
Operating revenues of ENSG rose 14.7% year over year to $732.5 million. Growth can be attributed to better service and rental revenues. The top line outpaced the consensus mark by a whisker.
Quarterly results benefited from a consistent improvement in same-store and transitioning occupancy, skilled revenues and managed care revenues. Nevertheless, the upside was partly offset by an elevated expense level induced mainly by the rising cost of services.
Adjusted net income advanced 12.9% year over year to $57.4 million.
Same-store occupancy grew 1.8% year over year, while transitioning occupancy increased 6.4% year over year in the quarter under review. Same-store and transitioning managed care revenues improved 6% and 29.1%, respectively, on a year-over-year basis.
Total expenses of $654.3 million escalated 14% year over year due to increased cost of services, rent-cost of services, general and administrative expenses, and depreciation and amortization.
Segmental Update
Skilled Services: Revenues of $702.5 million climbed 14.6% year over year in the second quarter. Segment income of $102.3 million rose 13.6% year over year.
As of Jun 30, 2022, skilled nursing operations and campus operations of the segment totaled 215 and 25, respectively.
Standard Bearer: Revenues amounted to $17.6 million, which advanced 23.8% year over year in the quarter under review. Segment income dropped 13.5% year over year to $6.8 million.
Funds from Operations (FFO) came in at $12.1 million, which dipped 0.8% year over year.
Financial Update (as of Jun 30, 2022)
Ensign Group exited the second quarter with cash and cash equivalents of $285.6 million, which increased 8.9% from the figure at 2021 end. ENSG had an available capacity of $593.3 million under its credit facility at the end of the quarter.
Total assets of $3.1 billion climbed 9.6% from the 2021-end level.
Long-term debt-less current maturities came in at $151.1 million, down 1.2% from the figure as of Dec 31, 2021.
During the six months ended Jun 30, 2022, net cash provided by operating activities of $129.8 million improved 19.8% from the prior-year comparable period’s level.
Capital-Deployment Update
Ensign Group bought back shares worth around $20 million during the second quarter, completing the $20-million share buyback program authorized in Feb 2022.
ENSG paid out a quarterly cash dividend of 5.5 cents per share in the quarter under review.
2022 Guidance
Ensign Group hiked the full-year outlook for revenues and EPS.
EPS is currently anticipated within $4.05-$4.15, up from the prior guidance of $4.01-4.13. The midpoint of the revised guidance indicates 13% growth from the 2021 reported figure.
Revenues are forecast between $2.96 billion and $3 billion in 2022, higher than the previous outlook of $2.93-$2.98 billion. The midpoint of the updated guidance suggests a rise of 14.6% from the reported figure of 2021.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Ensign Group has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ensign Group has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.