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Envision Healthcare (EVHC) Q2 Earnings Beat, Revenues Miss
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Envision Healthcare Corporation reported second-quarter 2017 adjusted earnings of 79 cents per share beating the Zacks Consensus Estimate of 75 cents. The company is a leading provider of physician-led outsourced medical services to consumers, hospitals and healthcare systems.
The company reported adjusted revenues of approximately $1.95 billion, which lagged the Zacks Consensus Estimate of $1.96 billion. However, the figure surpassed the year-ago quarterly revenues of $758.5 million.
Segment Details
Physician Services: Net revenues for Physician Services were $1.63 billion in the second quarter, increasing 9.3% from $1.49 billion in the prior-year period. The upside was driven by contributions from acquisitions and new contracts.
Ambulatory Services: Net revenues in the reported quarter were $318.5 million versus $319.8 million in the prior-year quarter. Ambulatory Services operated 263 ambulatory surgery centers and one surgical hospital as of Jun 30.
Envision Healthcare Corporation Price, Consensus and EPS Surprise
As of Jun 30, Envision Healthcare had cash and cash equivalents of $441.3 million versus $316.9 million as of Dec 31, 2016. Net cash flows from operations were $236.6 million during the second quarter of 2017.
Guidance Revised
Envision Healthcare revised its 2017 guidance to reflect lower emergency medicine volumes and their impact on financial performance. The company expects net revenues in the range of $7.75 billion to $8.00 billion for fiscal 2017. Adjusted EBITDA is expected in the range of $1.02 billion to $1.04 billion. Adjusted EPS for fiscal 2017 is expected in the range of $3.35 to $3.45.
For the third quarter of 2017, the company expects to generate adjusted EBITDA in the range of $266 million to $278 million. It anticipates adjusted EPS between 87 cents to 93 cents.
Key Picks
Envision Healthcare has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical sector are Edwards Lifesciences Corporation (EW - Free Report) , Fresenius Medical Care Corporation (FMS - Free Report) and Dextera Surgical Inc. .
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. Notably, the stock has a return of 3.4% over the last three months.
Fresenius Medical yielded a strong return of 20.6% over the last one year. The stock has a long-term expected earnings growth rate of 30.5%.
Dextera has a projected sales growth of 54.8% for the current year. The stock promises a long-term expected earnings growth rate of 25%.
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Envision Healthcare (EVHC) Q2 Earnings Beat, Revenues Miss
Envision Healthcare Corporation reported second-quarter 2017 adjusted earnings of 79 cents per share beating the Zacks Consensus Estimate of 75 cents. The company is a leading provider of physician-led outsourced medical services to consumers, hospitals and healthcare systems.
The company reported adjusted revenues of approximately $1.95 billion, which lagged the Zacks Consensus Estimate of $1.96 billion. However, the figure surpassed the year-ago quarterly revenues of $758.5 million.
Segment Details
Physician Services: Net revenues for Physician Services were $1.63 billion in the second quarter, increasing 9.3% from $1.49 billion in the prior-year period. The upside was driven by contributions from acquisitions and new contracts.
Ambulatory Services: Net revenues in the reported quarter were $318.5 million versus $319.8 million in the prior-year quarter. Ambulatory Services operated 263 ambulatory surgery centers and one surgical hospital as of Jun 30.
Envision Healthcare Corporation Price, Consensus and EPS Surprise
Envision Healthcare Corporation Price, Consensus and EPS Surprise | Envision Healthcare Corporation Quote
Financial Details
As of Jun 30, Envision Healthcare had cash and cash equivalents of $441.3 million versus $316.9 million as of Dec 31, 2016. Net cash flows from operations were $236.6 million during the second quarter of 2017.
Guidance Revised
Envision Healthcare revised its 2017 guidance to reflect lower emergency medicine volumes and their impact on financial performance. The company expects net revenues in the range of $7.75 billion to $8.00 billion for fiscal 2017. Adjusted EBITDA is expected in the range of $1.02 billion to $1.04 billion. Adjusted EPS for fiscal 2017 is expected in the range of $3.35 to $3.45.
For the third quarter of 2017, the company expects to generate adjusted EBITDA in the range of $266 million to $278 million. It anticipates adjusted EPS between 87 cents to 93 cents.
Key Picks
Envision Healthcare has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical sector are Edwards Lifesciences Corporation (EW - Free Report) , Fresenius Medical Care Corporation (FMS - Free Report) and Dextera Surgical Inc. .
Notably, Edwards Lifesciences and Fresenius Medical sport a Zacks Rank #1 (Strong Buy), while Dextera has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. Notably, the stock has a return of 3.4% over the last three months.
Fresenius Medical yielded a strong return of 20.6% over the last one year. The stock has a long-term expected earnings growth rate of 30.5%.
Dextera has a projected sales growth of 54.8% for the current year. The stock promises a long-term expected earnings growth rate of 25%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>