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Mednax (MD) Acquires Urology Unit, Deepens Reach in Florida
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MEDNAX, Inc. (MD - Free Report) has acquired Palm Beach Pediatric Urology, a private pediatric urology physician practice.
The 17-year old urology unit located in Palm Beach, FL, provides consultation for all pediatric and fetal genitourinary disorders; bladder, kidney and genitalia reconstructive and corrective surgery, cystoscopy, circumcision, ultrasound, and urinalysis services.
The buyout will deepen Mednax’s reach in Florida where it is already has a presence via a wide network of physicians. It provides multiple specialties services like anesthesiology, maternal-fetal medicine, neonatology, newborn hearing screens, obstetric hospitalist, pediatric cardiology, pediatric hospitalist, pediatric intensive care, pediatric surgery and radiology in the region.
The value of the all cash deal was not disclosed, but will be immediately accretive to the company’s earnings. This buyout marks the addition of the ninth physician group practices in 2017.
Acquisitions have been one of the most sought after strategy by the company to achieve fast-paced growth. During the year ended Dec 31, 2016, the company completed 15 acquisitions, of which 13 were physician group practices. Numerous buyouts by the company have added to its top line since 2012. In 2016, 12.7% growth in net revenues was attributed to acquisitions completed after Dec 31, 2014.
The company, which is suffering from slowed growth of one of its neonatology, businesses, change in payor mix in its anesthesiology business and high expenses, is expected to get a boost in earnings from its acquisitions. In the last reported quarter, the company’s net revenues increased 9% driven by contribution from acquisitions, slightly offset by a decrease in same-unit revenues.
Year to date, shares of the company have lost 33%, underperforming the 3.8% growth recorded by the industry it belongs to.
UnitedHealth Group, one of the leading diversified health and well-being companies has seen its Zacks Consensus Estimate for 2017 and 2018 being revised upward by 1% and 0.2%, respectively, in the past 90 days.
Centene, a multi-national healthcare company of the United States witnessed upward revision of 3.4% and 2.4% in its Zacks Consensus Estimate for 2017 and 2018, respectively, in the past 90 days.
Select Medical, another leading managed care company has also seen its Zacks Consensus Estimate for 2017 and 2018 being revised upward by 7% and 10%, respectively, in the past 90 days. The company posted positive surprises in the last two quarters as well.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
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Mednax (MD) Acquires Urology Unit, Deepens Reach in Florida
MEDNAX, Inc. (MD - Free Report) has acquired Palm Beach Pediatric Urology, a private pediatric urology physician practice.
The 17-year old urology unit located in Palm Beach, FL, provides consultation for all pediatric and fetal genitourinary disorders; bladder, kidney and genitalia reconstructive and corrective surgery, cystoscopy, circumcision, ultrasound, and urinalysis services.
The buyout will deepen Mednax’s reach in Florida where it is already has a presence via a wide network of physicians. It provides multiple specialties services like anesthesiology, maternal-fetal medicine, neonatology, newborn hearing screens, obstetric hospitalist, pediatric cardiology, pediatric hospitalist, pediatric intensive care, pediatric surgery and radiology in the region.
The value of the all cash deal was not disclosed, but will be immediately accretive to the company’s earnings. This buyout marks the addition of the ninth physician group practices in 2017.
Acquisitions have been one of the most sought after strategy by the company to achieve fast-paced growth. During the year ended Dec 31, 2016, the company completed 15 acquisitions, of which 13 were physician group practices. Numerous buyouts by the company have added to its top line since 2012. In 2016, 12.7% growth in net revenues was attributed to acquisitions completed after Dec 31, 2014.
The company, which is suffering from slowed growth of one of its neonatology, businesses, change in payor mix in its anesthesiology business and high expenses, is expected to get a boost in earnings from its acquisitions. In the last reported quarter, the company’s net revenues increased 9% driven by contribution from acquisitions, slightly offset by a decrease in same-unit revenues.
Year to date, shares of the company have lost 33%, underperforming the 3.8% growth recorded by the industry it belongs to.
Mednax carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the healthcare sector are UnitedHealth Group Inc. (UNH - Free Report) , Centene Corp. (CNC - Free Report) and Select Medical Holdings, Corp. (SEM - Free Report) . Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth Group, one of the leading diversified health and well-being companies has seen its Zacks Consensus Estimate for 2017 and 2018 being revised upward by 1% and 0.2%, respectively, in the past 90 days.
Centene, a multi-national healthcare company of the United States witnessed upward revision of 3.4% and 2.4% in its Zacks Consensus Estimate for 2017 and 2018, respectively, in the past 90 days.
Select Medical, another leading managed care company has also seen its Zacks Consensus Estimate for 2017 and 2018 being revised upward by 7% and 10%, respectively, in the past 90 days. The company posted positive surprises in the last two quarters as well.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>