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Ensign Group's (ENSG) Q1 Earnings Beat, 2021 EPS View Up

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The Ensign Group, Inc. (ENSG - Free Report) delivered adjusted operating earnings of 87 cents per share in first-quarter 2021, surpassing the Zacks Consensus Estimate of 79 cents by 10.1%. Further, the bottom line improved 19.2% year over year.

The company’s results benefited from a healthy revenue stream.

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 $627 million increased 6.3% year over year in the reported quarter. However, the top line missed the Zacks Consensus Estimate by 0.9%.

Further, adjusted net income in the quarter under review was $49.6 million, up 15.5% from the prior-year quarter.

Same-store revenues increased 7.6% year over year while transitioning skilled revenues rose 43.7% year over year.

Total revenues in the Transitional and Skilled Services, the only reporting segment of the company, came in at $601 million, up 7.7% year over year.
Real estate segment reported income of $8.8 million in the first quarter, up 39.5% year over year.

However, total expenses increased 5.8% year over year to $563.5 million due to higher cost of services, rent – cost of services and general and administrative expense.

Financial Update

The company exited the first quarter with $155.5 million of cash and cash equivalents, down 34.4% from the level at 2020 end.

As of Mar 31, 2021, long-term debt less current maturities was $111.8 million, down 0.6% from the level at 2020 end.

Net cash provided by operating activities for the first quarter of 2021 summed $34.2 million, up 26.4% year over year.

Dividend Update

Ensign Group paid out a quarterly cash dividend of 5.25 cents per share during the quarter.

2021 Guidance

Following solid first-quarter results, the company raised its current-year earnings projection to $3.54-$3.66 from the prior outlook of $3.44-$3.56 per share.

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

Zacks Rank

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.

Other Medical Sector Releases

Of the medical sector players that have reported first-quarter earnings so far, the bottom-line results of Community Health Systems, Inc. (CYH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Tenet Healthcare Corporation (THC - Free Report) beat their respective Zacks Consensus Estimate.

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