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Ensign Group (ENSG) Q4 Earnings Match Estimates, Rise Y/Y
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The Ensign Group, Inc. (ENSG - Free Report) delivered adjusted operating earnings of 90 cents per share in fourth-quarter 2021, matching the Zacks Consensus Estimate. The bottom line improved 20% year over year.
Results benefited from a healthy revenue stream. The quarter witnessed higher same-store and transitioning occupancy as well as decent skilled revenues and managed care revenues. However, the same was partly offset by steep expenses.
The Ensign Group, Inc. Price, Consensus and EPS Surprise
Total operating revenues of $693 million increased 10.2% year over year in the reported quarter. However, the top line missed the Zacks Consensus Estimate by 0.9%.
Adjusted net income in the quarter under review was $54.9 million, up 22.4% from the prior-year quarter’s level.
Same-store occupancy increased 3% year over year.
Real estate segment reported rental revenues of $17.4 million in the fourth quarter, up 9.9% year over year.
Skilled services revenues came in at $667.2 million, up 10.7% year over year.
On the flip side, total expenses increased 9.5% year over year to $627.5 million due to higher cost of services, rent-cost of services, general and administrative expense as well as higher depreciation and amortization.
Financial Update
ENSG exited the fourth quarter with $262.2 million of cash and cash equivalents, up 10.8% from the level at 2020 end.
As of Dec 31, 2021, long-term debt less current maturities was $152.8 million, up 35.8% from the level at 2020 end.
Net cash provided by operating activities came in at $275.68 million, down 26.2% year over year.
Capital-Deployment Update
Ensign Group paid out a quarterly cash dividend of 5.5 cents per share during the quarter. In October 2021, management took up a share repurchase program of $20 million. The same also approved a new stock buyback plan of $20 million for 2022.
2022 Guidance
Following fourth-quarter 2021 results, Ensign Group provided its current-year earnings projection of $4.01-4.13. The midpoint of the same indicates an increase of 11.8% from the 2021 reported figure.
ENSG also released an annual revenue outlook of $2.93-$2.98 billion. The midpoint of annual revenue projection indicates an upside of 12% from the 2021 reported figure.
2021 Update
EPS for the year came it at $3.64, up 16.3% year over year. Adjusted revenues for the year increased 9.5% year over year. Adjusted net income for the year was $207.2 million, up 18.7% year over year.
Among other players from the Medical space that have reported results so far, the bottom-line results of UnitedHealth Group Inc. (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Anthem Inc. beat respective estimates.
UnitedHealth reported fourth-quarter 2021 earnings of $4.48 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 77.8% year over year on revenue growth.
Revenues of UNH climbed 12.6% year over year, driven by revenue growth at both its business units of UnitedHealthcare and Optum. The top line beat the Zacks Consensus Estimate by 1%.
Anthem delivered fourth-quarter 2021 earnings of $5.14 per share, which beat the Zacks Consensus Estimate of $5.11. The bottom line also increased 102.4% year over year.
ANTM’s operating revenues for the quarter grew 14.2% year over year to $36,018 million. However, the same missed the consensus mark of $36,358 million.
Tenet Healthcare reported fourth-quarter 2021 adjusted net earnings of $2.70 per share, which surpassed the Zacks Consensus Estimate and rose year over year, both by 73.1%.
THC’s results gained from reduced expenses and operational excellence. Net operating revenues dipped 1.2% year over year to $4.8 billion due to weak performances by its Hospital and Conifer segments.
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Ensign Group (ENSG) Q4 Earnings Match Estimates, Rise Y/Y
The Ensign Group, Inc. (ENSG - Free Report) delivered adjusted operating earnings of 90 cents per share in fourth-quarter 2021, matching the Zacks Consensus Estimate. The bottom line improved 20% year over year.
Results benefited from a healthy revenue stream. The quarter witnessed higher same-store and transitioning occupancy as well as decent skilled revenues and managed care revenues. However, the same was partly offset by steep expenses.
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 $693 million increased 10.2% year over year in the reported quarter. However, the top line missed the Zacks Consensus Estimate by 0.9%.
Adjusted net income in the quarter under review was $54.9 million, up 22.4% from the prior-year quarter’s level.
Same-store occupancy increased 3% year over year.
Real estate segment reported rental revenues of $17.4 million in the fourth quarter, up 9.9% year over year.
Skilled services revenues came in at $667.2 million, up 10.7% year over year.
On the flip side, total expenses increased 9.5% year over year to $627.5 million due to higher cost of services, rent-cost of services, general and administrative expense as well as higher depreciation and amortization.
Financial Update
ENSG exited the fourth quarter with $262.2 million of cash and cash equivalents, up 10.8% from the level at 2020 end.
As of Dec 31, 2021, long-term debt less current maturities was $152.8 million, up 35.8% from the level at 2020 end.
Net cash provided by operating activities came in at $275.68 million, down 26.2% year over year.
Capital-Deployment Update
Ensign Group paid out a quarterly cash dividend of 5.5 cents per share during the quarter. In October 2021, management took up a share repurchase program of $20 million. The same also approved a new stock buyback plan of $20 million for 2022.
2022 Guidance
Following fourth-quarter 2021 results, Ensign Group provided its current-year earnings projection of $4.01-4.13. The midpoint of the same indicates an increase of 11.8% from the 2021 reported figure.
ENSG also released an annual revenue outlook of $2.93-$2.98 billion. The midpoint of annual revenue projection indicates an upside of 12% from the 2021 reported figure.
2021 Update
EPS for the year came it at $3.64, up 16.3% year over year. Adjusted revenues for the year increased 9.5% year over year. Adjusted net income for the year was $207.2 million, up 18.7% year over year.
Zacks Rank
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.
Other Medical Sector Releases
Among other players from the Medical space that have reported results so far, the bottom-line results of UnitedHealth Group Inc. (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Anthem Inc. beat respective estimates.
UnitedHealth reported fourth-quarter 2021 earnings of $4.48 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 77.8% year over year on revenue growth.
Revenues of UNH climbed 12.6% year over year, driven by revenue growth at both its business units of UnitedHealthcare and Optum. The top line beat the Zacks Consensus Estimate by 1%.
Anthem delivered fourth-quarter 2021 earnings of $5.14 per share, which beat the Zacks Consensus Estimate of $5.11. The bottom line also increased 102.4% year over year.
ANTM’s operating revenues for the quarter grew 14.2% year over year to $36,018 million. However, the same missed the consensus mark of $36,358 million.
Tenet Healthcare reported fourth-quarter 2021 adjusted net earnings of $2.70 per share, which surpassed the Zacks Consensus Estimate and rose year over year, both by 73.1%.
THC’s results gained from reduced expenses and operational excellence. Net operating revenues dipped 1.2% year over year to $4.8 billion due to weak performances by its Hospital and Conifer segments.