MEDNAX, Inc. (MD - Free Report) reported first-quarter 2019 adjusted earnings of 65 cents per share, missing the Zacks Consensus Estimate by 8.5%. Moreover, the bottom line decreased 27% year over year due to a rise in expenses and lower revenues.
Quarterly Details
The company generated revenues of $851.18 million, lagging the Zacks Consensus Estimate by 5.9%. Also, the top line was down 5.6% from the year-ago period.
General and administrative expenses inched up 0.1% to $101 million.
Interest expense of the company escalated 54.3% to $30.7 million, primarily due to higher effective interest rate on borrowings between the two periods.
In the quarter under review, adjusted EBITDA totaled $104.9 million, down by nearly 14.3%.
Financial Update
As of Mar 31, 2019, the company had cash and cash equivalents of about $46.5 million, down 2.2% from the level as of 2018 end.
The company incurred total debt of $2.1 billion, up 7.3% from the level as of Dec 31, 2018 and total assets of $5.7 billion, down 3.9% from the figure at 2018 end.
It used $60.4 million to fund operations in the first three months of 2019, down 48.3% year over year.
Capital Deployment
The company bought back shares worth $79 million in the first three months of 2019.
Second-Quarter Outlook
For the second quarter of 2019, the company expects adjusted EPS in the band of 84-92 cents, up from the previous guidance of 67-75 cents. MEDNAX projects adjusted EBITDA in the range of 125-$135 million, up from the past forecast of $108-$118 million.
This guidance assumes total same-unit revenue growth for the second quarter of 2019 from flat to 2% as compared to the prior-year period’s level.
2019 Guidance Revised
The company now estimates adjusted EBITDA within $505-$535 million, down from the earlier prediction of $550-$580 million.
Zacks Rank
MEDNAX carries a Zacks Rank 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other players from the medical sector, which already reported first-quarter earnings so far, the bottom-line figures of Anthem Inc. , Centene Corporation (CNC - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat the respective Zacks Consensus Estimates.
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MEDNAX, Inc. (MD - Free Report) reported first-quarter 2019 adjusted earnings of 65 cents per share, missing the Zacks Consensus Estimate by 8.5%. Moreover, the bottom line decreased 27% year over year due to a rise in expenses and lower revenues.
Quarterly Details
The company generated revenues of $851.18 million, lagging the Zacks Consensus Estimate by 5.9%. Also, the top line was down 5.6% from the year-ago period.
General and administrative expenses inched up 0.1% to $101 million.
Interest expense of the company escalated 54.3% to $30.7 million, primarily due to higher effective interest rate on borrowings between the two periods.
In the quarter under review, adjusted EBITDA totaled $104.9 million, down by nearly 14.3%.
Financial Update
As of Mar 31, 2019, the company had cash and cash equivalents of about $46.5 million, down 2.2% from the level as of 2018 end.
The company incurred total debt of $2.1 billion, up 7.3% from the level as of Dec 31, 2018 and total assets of $5.7 billion, down 3.9% from the figure at 2018 end.
It used $60.4 million to fund operations in the first three months of 2019, down 48.3% year over year.
Capital Deployment
The company bought back shares worth $79 million in the first three months of 2019.
Second-Quarter Outlook
For the second quarter of 2019, the company expects adjusted EPS in the band of 84-92 cents, up from the previous guidance of 67-75 cents. MEDNAX projects adjusted EBITDA in the range of 125-$135 million, up from the past forecast of $108-$118 million.
This guidance assumes total same-unit revenue growth for the second quarter of 2019 from flat to 2% as compared to the prior-year period’s level.
2019 Guidance Revised
The company now estimates adjusted EBITDA within $505-$535 million, down from the earlier prediction of $550-$580 million.
Zacks Rank
MEDNAX carries a Zacks Rank 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other players from the medical sector, which already reported first-quarter earnings so far, the bottom-line figures of Anthem Inc. , Centene Corporation (CNC - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat the respective Zacks Consensus Estimates.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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