MEDNAX, Inc. (MD - Free Report) delivered fourth-quarter 2019 adjusted earnings of 91 cents per share, which beat the Zacks Consensus Estimate by 1.1%. However, the bottom line declined nearly 1.1% year over year.
The company recorded growth in same unit revenues and lower expenses.
MEDNAX, Inc. Price, Consensus and EPS Surprise
Full-Year Highlights
Operating income per share of $3.38 outpaced the Zacks Consensus Estimate of $3.36 by 0.6%. However, the bottom line decreased 4.8% from 2018.
Revenues of $3.5 billion were in line with the Zacks Consensus Estimate but increased 1.7% from 2018.
Quarterly Details
The company generated revenues of $905 million, which beat the Zacks Consensus Estimate by 0.4%. However, the top line was down 3% from the year-ago period. Same unit revenues increased 2.3% year over year, mainly driven by recent buyouts. However, this upside was offset by the non-renewal of a few contracts.
General and administrative expenses declined 8.2% to $96.9 million.
Interest expense of the company escalated 9.1% to $27.7 million, primarily due to higher effective interest rate on borrowings between two periods.
In the quarter under review, EBITDA totaled $132.2 million, up nearly 1.5%.
The company paid a total of $82.6 million in the reported quarter to fund acquisitions and to make contingent purchase price payments for previously completed acquisitions and $6.9 for capital expenditures.
Financial Update
As of Dec 31, 2019, the company had cash and cash equivalents of about $112.8 million, up 147.9% from year-end 2018.
The company incurred total debt of $1.75 billion, down 12.5% from 2018-end level and total assets of $4.1 billion, down 30.2% from the level at 2018 end.
Cash flow from operating activities was $127.6 million, up 3.1% year over year.
First-Quarter Guidance
For the first quarter of 2020, the company expects adjusted EPS to be in the band of 55-63 cents. Mednax projects adjusted EBITDA in the range of $90-$100 million.
This guidance assumes total same-unit revenue growth for the three months ended Mar 31, 2020 to be in the range of 2% to 4%.
Shares outstanding are predicted to be around 84.5 million.
Preliminary 2020 Guidance
On a preliminary basis, the company estimates adjusted EBITDA to be in the band of $450-$490 million.
The company estimates an effective tax rate of 27%. Average diluted shares for the full-year are expected to be approximately 85 million.
Zacks Rank
MEDNAX currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Medical Sector Releases
Aduro Biotech, Inc. is set to report fourth-quarter earnings on Feb 26. The stock has a Zacks Rank of 1.
Adaptive Biotechnologies Corporation (ADPT - Free Report) is slated to announce fourth-quarter earnings on Feb 26. The stock has a Zacks Ranks #3.
Nevro Corp. (NVRO - Free Report) is set to report fourth-quarter earnings on Feb 25. It has a Zacks Rank #2.
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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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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.
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Free: See Our Top Stock and 4 Runners Up >>
MEDNAX, Inc. (MD - Free Report) delivered fourth-quarter 2019 adjusted earnings of 91 cents per share, which beat the Zacks Consensus Estimate by 1.1%. However, the bottom line declined nearly 1.1% year over year.
The company recorded growth in same unit revenues and lower expenses.
MEDNAX, Inc. Price, Consensus and EPS Surprise
Full-Year Highlights
Operating income per share of $3.38 outpaced the Zacks Consensus Estimate of $3.36 by 0.6%. However, the bottom line decreased 4.8% from 2018.
Revenues of $3.5 billion were in line with the Zacks Consensus Estimate but increased 1.7% from 2018.
Quarterly Details
The company generated revenues of $905 million, which beat the Zacks Consensus Estimate by 0.4%. However, the top line was down 3% from the year-ago period. Same unit revenues increased 2.3% year over year, mainly driven by recent buyouts. However, this upside was offset by the non-renewal of a few contracts.
General and administrative expenses declined 8.2% to $96.9 million.
Interest expense of the company escalated 9.1% to $27.7 million, primarily due to higher effective interest rate on borrowings between two periods.
In the quarter under review, EBITDA totaled $132.2 million, up nearly 1.5%.
The company paid a total of $82.6 million in the reported quarter to fund acquisitions and to make contingent purchase price payments for previously completed acquisitions and $6.9 for capital expenditures.
Financial Update
As of Dec 31, 2019, the company had cash and cash equivalents of about $112.8 million, up 147.9% from year-end 2018.
The company incurred total debt of $1.75 billion, down 12.5% from 2018-end level and total assets of $4.1 billion, down 30.2% from the level at 2018 end.
Cash flow from operating activities was $127.6 million, up 3.1% year over year.
First-Quarter Guidance
For the first quarter of 2020, the company expects adjusted EPS to be in the band of 55-63 cents. Mednax projects adjusted EBITDA in the range of $90-$100 million.
This guidance assumes total same-unit revenue growth for the three months ended Mar 31, 2020 to be in the range of 2% to 4%.
Shares outstanding are predicted to be around 84.5 million.
Preliminary 2020 Guidance
On a preliminary basis, the company estimates adjusted EBITDA to be in the band of $450-$490 million.
The company estimates an effective tax rate of 27%. Average diluted shares for the full-year are expected to be approximately 85 million.
Zacks Rank
MEDNAX currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Medical Sector Releases
Aduro Biotech, Inc. is set to report fourth-quarter earnings on Feb 26. The stock has a Zacks Rank of 1.
Adaptive Biotechnologies Corporation (ADPT - Free Report) is slated to announce fourth-quarter earnings on Feb 26. The stock has a Zacks Ranks #3.
Nevro Corp. (NVRO - Free Report) is set to report fourth-quarter earnings on Feb 25. It has a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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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