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MEDNAX's (MD) Q4 Earnings Fall Shy of Estimates, Tumble Y/Y
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MEDNAX, Inc. (MD - Free Report) reported fourth-quarter 2020 adjusted earnings of 25 cents per share, which missed the Zacks Consensus Estimate of 31 cents by 19.4%. Moreover, the bottom line plunged 72.5% year over year due to soft revenues.
The COVID-19 pandemic continued to adversely impact the company’s patient volumes and revenues, which in turn, dragged its fourth-quarter results.
The company generated revenues of $417 million, which missed the Zacks Consensus Estimate by 8.6%. The top line also slumped 54% from the year-ago period. This was due to dented patient volumes stemming from the pandemic.
Same unit revenues were down 9.5% year over year. Nevertheless, this decline was partially offset by growth from the company’s recent buyouts.
General and administrative expenses decreased 7.6% year over year to $54.7 million due to rise in salary and net staffing reductions.
Total operating expenses decreased 8.2% year over year to $384.3 million on the back of lower practise salaries and benefits, transformational and restructuring expense and general and administrative expenses.
Interest expense of the company dipped 1.3% to $27.3 million due to lower borrowings.
In the quarter under review, adjusted EBITDA totaled $58.3 million, down 24.8% year over year.
Financial Update
As of Dec 31, 2020, the company had cash and cash equivalents of $1.1 billion, which increased more than ten-fold from the level as of Dec 31, 2019.
The company’s total debt, net of $1.7 billion, inched up 0.8% from the level at 2019 end while total assets worth $3.3 billion were down 19.2% from the last-year end.
Cash flow generated from operating activities was $82.2 million in the quarter under review, which increased 116.9% year over year.
Business Update
The company completed its pending sale of MEDNAX Radiology Solutions to intensify its focus on Pediatrix and Obstetrix medical groups. It received proceeds of approximately $865 million after related transaction expenses and customary adjustments from this transaction.
Full-Year Update
For the year ended Dec 31, 2020, the company’s operating revenues came in at $1.73 billion, down 2.8% year over year.
Adjusted EBITDA for 2020 was down 16.9%. Adjusted EPS from continuing operations for 2020 stood at 95 cents, down 32.1% from the 2019 reported figure.
Of the medical sector players that already reported fourth-quarter earnings, the bottom-line results of Tenet Healthcare Corporation (THC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Community Health Systems, Inc. (CYH - Free Report) beat the respective Zacks Consensus Estimate.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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MEDNAX's (MD) Q4 Earnings Fall Shy of Estimates, Tumble Y/Y
MEDNAX, Inc. (MD - Free Report) reported fourth-quarter 2020 adjusted earnings of 25 cents per share, which missed the Zacks Consensus Estimate of 31 cents by 19.4%. Moreover, the bottom line plunged 72.5% year over year due to soft revenues.
The COVID-19 pandemic continued to adversely impact the company’s patient volumes and revenues, which in turn, dragged its fourth-quarter results.
MEDNAX, Inc. Price, Consensus and EPS Surprise
MEDNAX, Inc. price-consensus-eps-surprise-chart | MEDNAX, Inc. Quote
Quarterly Details
The company generated revenues of $417 million, which missed the Zacks Consensus Estimate by 8.6%. The top line also slumped 54% from the year-ago period. This was due to dented patient volumes stemming from the pandemic.
Same unit revenues were down 9.5% year over year. Nevertheless, this decline was partially offset by growth from the company’s recent buyouts.
General and administrative expenses decreased 7.6% year over year to $54.7 million due to rise in salary and net staffing reductions.
Total operating expenses decreased 8.2% year over year to $384.3 million on the back of lower practise salaries and benefits, transformational and restructuring expense and general and administrative expenses.
Interest expense of the company dipped 1.3% to $27.3 million due to lower borrowings.
In the quarter under review, adjusted EBITDA totaled $58.3 million, down 24.8% year over year.
Financial Update
As of Dec 31, 2020, the company had cash and cash equivalents of $1.1 billion, which increased more than ten-fold from the level as of Dec 31, 2019.
The company’s total debt, net of $1.7 billion, inched up 0.8% from the level at 2019 end while total assets worth $3.3 billion were down 19.2% from the last-year end.
Cash flow generated from operating activities was $82.2 million in the quarter under review, which increased 116.9% year over year.
Business Update
The company completed its pending sale of MEDNAX Radiology Solutions to intensify its focus on Pediatrix and Obstetrix medical groups. It received proceeds of approximately $865 million after related transaction expenses and customary adjustments from this transaction.
Full-Year Update
For the year ended Dec 31, 2020, the company’s operating revenues came in at $1.73 billion, down 2.8% year over year.
Adjusted EBITDA for 2020 was down 16.9%. Adjusted EPS from continuing operations for 2020 stood at 95 cents, down 32.1% from the 2019 reported figure.
Zacks Rank
MEDNAX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that already reported fourth-quarter earnings, the bottom-line results of Tenet Healthcare Corporation (THC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Community Health Systems, Inc. (CYH - Free Report) beat the respective Zacks Consensus Estimate.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>