Back to top

Image: Shutterstock

Ensign Group's (ENSG) Q2 Earnings In Line, Increase Y/Y

Read MoreHide Full Article

The Ensign Group, Inc.  (ENSG - Free Report) delivered adjusted operating earnings of 83 cents per share in second-quarter 2021, matching the Zacks Consensus Estimate. The bottom line improved 13.7% year over year.

Results benefited from a healthy revenue stream. The company also gained from continued improvements in census and managed care skilled mix across the portfolio along with better operational expense management.

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 operating revenues of $639 million increased 9.2% year over year in the reported quarter. However, the top line missed the Zacks Consensus Estimate by 1.5%.

Adjusted net income in the quarter under review was $50.9 million, up 18% from the prior-year quarter’s level.

Same-store revenues increased 4.2% year over year while transitioning skilled revenues rose 7.4% year over year.

Real estate segment reported rental revenues of $16 million in the second quarter, up 6.8% year over year. Skilled services revenues came in at $612.9 million, up 10.1% year over year.

On the flip side, total expenses increased 8.4% year over year to $573.7 million due to higher cost of services, rent – cost of services, and general and administrative expense.

Financial Update

The company exited the second quarter with $198.4 million of cash and cash equivalents, down 16.1% from the level at 2020 end.

As of Jun 30, 2021, long-term debt less current maturities was $111.2 million, down 1.1% from the level at 2020 end.

Net cash provided by operating activities at the end of second-quarter 2021 summed $108.4 million, down 37.8% 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 second-quarter results, the company raised its current-year earnings projection to $3.55-$3.67 from the previous outlook of $3.54-$3.66 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

Among other players from the medical space that have reported second-quarter earnings so far, the bottom-line results of  UnitedHealth Group Incorporated  (UNH - Free Report) ,  Tenet Healthcare Corporation  (THC - Free Report) and  HCA Healthcare, Inc.  (HCA - Free Report) beat estimates.