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Ensign Group's (ENSG) Q4 Earnings Top Estimates, Improve Y/Y

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The Ensign Group, Inc. (ENSG - Free Report) delivered adjusted operating earnings of 80 cents per share in fourth-quarter 2020, surpassing the Zacks Consensus Estimate of 79 cents by 1.3%. Further, the bottom line improved 33.3% year over year.

The company’s results benefited from revenues.

The Ensign Group, Inc. Price, Consensus and EPS Surprise

The Ensign Group, Inc. Price, Consensus and EPS Surprise

The Ensign Group, Inc. price-consensus-eps-surprise-chart | The Ensign Group, Inc. Quote

Operational Update

Total revenues of $629 million increased 12.3% year over year in the reported quarter. However, the top line missed the Zacks Consensus Estimate by 1.6%.

Further, adjusted net income in the quarter under review was $44.9 million, up 33.9% from the prior-year quarter.

Total revenues in the Transitional and Skilled Services, the only reporting segment of the company, came in at $603 million, up 13.8% year over year.

However, total expenses increased 10.1% year over year to $573.1 million due to higher cost of services, rent – cost of services plus general and administrative expenses.

Financial Update

The company exited the fourth quarter with $236.5 million of cash and cash equivalents, soaring 299.8% from the level at 2019 end.

As of Dec 31, 2020, long-term debt less current maturities was $112.5 million, down 65.4% from the level at 2019 end.

Net cash from operating activities for 2020 summed $373.3 million, up 121% year over year.

Dividend Update

Ensign Group paid out a quarterly cash dividend of 5.25 cents per share during the quarter. This marks the 18th consecutive annual dividend hike, reflecting its commitment to enhance shareholder value.

2021 Guidance

Following solid fourth-quarter results, the company reaffirmed its current-year annual earnings guidance of $3.44-$3.56 per share.

It still expects its annual revenues in the band of $2.62-$2.69 billion.

Full-Year Results

For 2020, the company’s earnings per share came in at $3.13. This compares to the Zacks Consensus Estimate of $3.06 per share.

Zacks Rank and Peer Releases

Ensign Group carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players from the medical space that already reported fourth-quarter earnings, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) and HCA Healthcare Inc. (HCA - Free Report) beat the respective Zacks Consensus Estimate while that of Anthem, Inc. (ANTM - Free Report) missed the mark.

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