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Ensign Group (ENSG) Up 8.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Ensign Group (ENSG - Free Report) . Shares have added about 8.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ensign Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Ensign Group Q4 Earnings Match Estimates, Rise Y/Y
Ensign Group delivered adjusted operating earnings of 97 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.
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 0.8%.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Ensign Group has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Ensign Group has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Ensign Group (ENSG) Up 8.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Ensign Group (ENSG - Free Report) . Shares have added about 8.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ensign Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Ensign Group Q4 Earnings Match Estimates, Rise Y/Y
Ensign Group delivered adjusted operating earnings of 97 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.
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 0.8%.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Ensign Group has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Ensign Group has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.