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The Ensign Group, Inc. (ENSG - Free Report) delivered adjusted operating earnings of 78 cents per share in third-quarter 2020, surpassing the Zacks Consensus Estimate by 8.3%. Further, the bottom line improved 41.8% year over year.
The company’s results benefited from revenues.
Operational Update
Total revenues of $599 million increased 17% year over year in the reported quarter. However, he top line missed the Zacks Consensus Estimate by 0.2%.
Further, adjusted net income in the quarter under review was $43.7 million, up 94.5% from the prior-year quarter.
Total revenues in the Transitional and Skilled Services, the only reporting segment of the company, came in at $570.3 million, up 17.4% year over year. Notably, the segment accounted for 95% of the total revenues in the reported quarter.
However, total expenses increased 13.1% year over year to $544 million due to higher cost of services plus general and administrative expenses.
The Ensign Group, Inc. Price, Consensus and EPS Surprise
The company exited the third quarter with $175.4 million of cash and cash equivalents, up 196.4% from the level at 2019 end.
As of Sep 30, 2020, long-term debt less current maturities was $113.2 million, down 65.2% from the level at 2019 end.
Net cash from operating activities for the first nine months of 2020 summed $282.2 million, up 158.7% year over year.
Dividend Update
Ensign Group paid out a quarterly cash dividend of 5 cents per share during the third quarter.
2020 and 2021 Guidance
Following solid third-quarter results, the company raised its 2020 annual earnings guidance to $3.04-$3.12 per share, up from the prior expectation of $3-$3.10.
It still expects its annual revenues in the band of $2.42-$2.45 billion.
Management also provided its 2021 outlook. It expects annual EPS from $3.44 to $3.56 while annual revenues are projected between $2.62 billion and $2.69 billion.
Of the medical sector players that already reported third-quarter results, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) and Centene Corporation (CNC - Free Report) beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. (HCA - Free Report) missed the same.
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Ensign Group's (ENSG) Q3 Earnings Beat Estimates, Rise Y/Y
The Ensign Group, Inc. (ENSG - Free Report) delivered adjusted operating earnings of 78 cents per share in third-quarter 2020, surpassing the Zacks Consensus Estimate by 8.3%. Further, the bottom line improved 41.8% year over year.
The company’s results benefited from revenues.
Operational Update
Total revenues of $599 million increased 17% year over year in the reported quarter. However, he top line missed the Zacks Consensus Estimate by 0.2%.
Further, adjusted net income in the quarter under review was $43.7 million, up 94.5% from the prior-year quarter.
Total revenues in the Transitional and Skilled Services, the only reporting segment of the company, came in at $570.3 million, up 17.4% year over year. Notably, the segment accounted for 95% of the total revenues in the reported quarter.
However, total expenses increased 13.1% year over year to $544 million due to higher cost of services plus general and administrative expenses.
The Ensign Group, Inc. Price, Consensus and EPS Surprise
The Ensign Group, Inc. price-consensus-eps-surprise-chart | The Ensign Group, Inc. Quote
Financial Update
The company exited the third quarter with $175.4 million of cash and cash equivalents, up 196.4% from the level at 2019 end.
As of Sep 30, 2020, long-term debt less current maturities was $113.2 million, down 65.2% from the level at 2019 end.
Net cash from operating activities for the first nine months of 2020 summed $282.2 million, up 158.7% year over year.
Dividend Update
Ensign Group paid out a quarterly cash dividend of 5 cents per share during the third quarter.
2020 and 2021 Guidance
Following solid third-quarter results, the company raised its 2020 annual earnings guidance to $3.04-$3.12 per share, up from the prior expectation of $3-$3.10.
It still expects its annual revenues in the band of $2.42-$2.45 billion.
Management also provided its 2021 outlook. It expects annual EPS from $3.44 to $3.56 while annual revenues are projected between $2.62 billion and $2.69 billion.
Zacks Rank and Peer Releases
Ensign Group carries a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of the medical sector players that already reported third-quarter results, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) and Centene Corporation (CNC - Free Report) beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. (HCA - Free Report) missed the same.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>