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Pediatrix (MD) Down 19% Since Q3 Earnings & Revenue Miss
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Shares of Pediatrix Medical Group, Inc. (MD - Free Report) have declined 19.3% since reporting dismal third-quarter 2022 earnings on Nov 3. The quarterly results took a hit from reflected operational headwinds in billing and collections coupled with mild challenges in volumes and payor mix. The 2022 outlook for adjusted EBITDA was also trimmed down by management.
Q3 Update
Pediatrix reported third-quarter 2022 adjusted earnings of 40 cents per share, missing the Zacks Consensus Estimate by 24.5%. Also, the bottom line declined 13% year over year.
MD’s net revenues of $490 million dipped 0.6% year over year. The top line lagged the consensus mark by 4.5%.
Overall same-unit revenues slipped 3.2% year over year in the quarter under review. Same-unit revenues attributable to patient volume inched up 0.3% year over year on the back of solid other pediatric services.
Pediatrix Medical Group, Inc. Price, Consensus and EPS Surprise
Total operating expenses increased 1.9% year over year to $442.5 million due to a 22% escalation in practice supplies and other operating expenses, a 4.3% uptick in practice salaries and benefits and a 9.9% rise in depreciation and amortization expenses. Yet, the figure came lower than our estimate of $453.2 million.
General and administrative expenses of $57.9 million dropped 13.5% year over year in the third quarter, courtesy of cost savings resulting from net staffing reductions, a decline in incentive compensation expense and lower revenue cycle management expenses.
Interest expense plunged 45.9% year over year to $9.5 million, attributable to a declining debt level and reduced interest rates from the refinancing transactions of Pediatrix closed in the first quarter of 2022.
Adjusted EBITDA of $58.3 million tumbled 20.6% year over year in the quarter under review and fell short of our estimate of $72.2 million.
Financial Update (as of Sep 30, 2022)
Pediatrix exited the third quarter with cash and cash equivalents of $8.7 million, which declined nearly 45-fold from the 2021-end figure.
Total assets of nearly $2,332 million decreased 14.3% from the figure at 2021 end.
Net debt, including finance leases, amounted to $745.9 million, down 25.8% from the level as of Dec 31, 2021.
Total equity of $858.7 million slipped 4.2% from the 2021-end level.
During the first nine months ended Sep 30, 2022, net cash provided by operating activities more than doubled the prior-year comparable period’s level to $68.3 million.
Pediatrix had a leftover borrowing capacity of $95 million as part of its revolving credit facility at the third-quarter end.
2022 View
Management anticipates adjusted EBITDA within $240-$245 million, down from the prior view of $260-$270 million. The midpoint of the revised guidance suggests an 8.7% decline from the 2021 figure.
Annual interest expense is forecast between $38.5 million and $39 million, up from the previous outlook of $36-$38 million. Depreciation and amortization expense is estimated at $35 million in 2022, up from the prior expectation of $34 million. Transformational and restructuring-related expenses are predicted at $10.3 million, higher than the prior projection of $9.3 million.
Earlier, MD had anticipated revenues of $2 billion this year, indicating a 4.7% increase from the 2021 reported figure.
Of the Medical sector players that have reported third-quarter results so far, the bottom-line results of Universal Health Services, Inc. (UHS - Free Report) , Centene Corporation (CNC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat the respective Zacks Consensus Estimate.
Universal Health reported third-quarter 2022 adjusted earnings of $2.54 per share, beating the Zacks Consensus Estimate by 5.8%. However, the bottom line fell 4.9% year over year. Net revenues of $3.3 billion improved 5.7% year over year in the third quarter. The top line outpaced the consensus mark by a whisker. Adjusted admissions (adjusted for outpatient activity) rose 1.9% year over year on a same-facility basis at UHS’ acute care hospitals, while adjusted patient days declined 5% year over year.
Centene’s third-quarter 2022 adjusted earnings per share of $1.30 outpaced the Zacks Consensus Estimate by 6.6%. The bottom line grew 3.2% year over year. CNC’s revenues of $35.9 billion advanced 11% year over year in the quarter under review and also beat the consensus mark by 1.1%. Premiums of $31.8 billion rose 10.3% year over year in the quarter under review, while service revenues climbed 14.7% year over year to $1.9 billion.
HCA Healthcare reported third-quarter 2022 adjusted earnings of $3.93 per share, beating the Zacks Consensus Estimate by 1%. However, the bottom line dropped 14% year over year. Revenues of HCA decreased 2% year over year to $15 billion in the third quarter and missed the consensus mark by a whisker. Same-facility equivalent admissions rose 2.3% year over year in the third quarter, while same-facility admissions fell 1.5% year over year.
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Pediatrix (MD) Down 19% Since Q3 Earnings & Revenue Miss
Shares of Pediatrix Medical Group, Inc. (MD - Free Report) have declined 19.3% since reporting dismal third-quarter 2022 earnings on Nov 3. The quarterly results took a hit from reflected operational headwinds in billing and collections coupled with mild challenges in volumes and payor mix. The 2022 outlook for adjusted EBITDA was also trimmed down by management.
Q3 Update
Pediatrix reported third-quarter 2022 adjusted earnings of 40 cents per share, missing the Zacks Consensus Estimate by 24.5%. Also, the bottom line declined 13% year over year.
MD’s net revenues of $490 million dipped 0.6% year over year. The top line lagged the consensus mark by 4.5%.
Overall same-unit revenues slipped 3.2% year over year in the quarter under review. Same-unit revenues attributable to patient volume inched up 0.3% year over year on the back of solid other pediatric services.
Pediatrix Medical Group, Inc. Price, Consensus and EPS Surprise
Pediatrix Medical Group, Inc. price-consensus-eps-surprise-chart | Pediatrix Medical Group, Inc. Quote
Total operating expenses increased 1.9% year over year to $442.5 million due to a 22% escalation in practice supplies and other operating expenses, a 4.3% uptick in practice salaries and benefits and a 9.9% rise in depreciation and amortization expenses. Yet, the figure came lower than our estimate of $453.2 million.
General and administrative expenses of $57.9 million dropped 13.5% year over year in the third quarter, courtesy of cost savings resulting from net staffing reductions, a decline in incentive compensation expense and lower revenue cycle management expenses.
Interest expense plunged 45.9% year over year to $9.5 million, attributable to a declining debt level and reduced interest rates from the refinancing transactions of Pediatrix closed in the first quarter of 2022.
Adjusted EBITDA of $58.3 million tumbled 20.6% year over year in the quarter under review and fell short of our estimate of $72.2 million.
Financial Update (as of Sep 30, 2022)
Pediatrix exited the third quarter with cash and cash equivalents of $8.7 million, which declined nearly 45-fold from the 2021-end figure.
Total assets of nearly $2,332 million decreased 14.3% from the figure at 2021 end.
Net debt, including finance leases, amounted to $745.9 million, down 25.8% from the level as of Dec 31, 2021.
Total equity of $858.7 million slipped 4.2% from the 2021-end level.
During the first nine months ended Sep 30, 2022, net cash provided by operating activities more than doubled the prior-year comparable period’s level to $68.3 million.
Pediatrix had a leftover borrowing capacity of $95 million as part of its revolving credit facility at the third-quarter end.
2022 View
Management anticipates adjusted EBITDA within $240-$245 million, down from the prior view of $260-$270 million. The midpoint of the revised guidance suggests an 8.7% decline from the 2021 figure.
Annual interest expense is forecast between $38.5 million and $39 million, up from the previous outlook of $36-$38 million. Depreciation and amortization expense is estimated at $35 million in 2022, up from the prior expectation of $34 million. Transformational and restructuring-related expenses are predicted at $10.3 million, higher than the prior projection of $9.3 million.
Earlier, MD had anticipated revenues of $2 billion this year, indicating a 4.7% increase from the 2021 reported figure.
Zacks Rank
Pediatrix currently has a Zacks Rank #4 (Sell).
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 third-quarter results so far, the bottom-line results of Universal Health Services, Inc. (UHS - Free Report) , Centene Corporation (CNC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat the respective Zacks Consensus Estimate.
Universal Health reported third-quarter 2022 adjusted earnings of $2.54 per share, beating the Zacks Consensus Estimate by 5.8%. However, the bottom line fell 4.9% year over year. Net revenues of $3.3 billion improved 5.7% year over year in the third quarter. The top line outpaced the consensus mark by a whisker. Adjusted admissions (adjusted for outpatient activity) rose 1.9% year over year on a same-facility basis at UHS’ acute care hospitals, while adjusted patient days declined 5% year over year.
Centene’s third-quarter 2022 adjusted earnings per share of $1.30 outpaced the Zacks Consensus Estimate by 6.6%. The bottom line grew 3.2% year over year. CNC’s revenues of $35.9 billion advanced 11% year over year in the quarter under review and also beat the consensus mark by 1.1%. Premiums of $31.8 billion rose 10.3% year over year in the quarter under review, while service revenues climbed 14.7% year over year to $1.9 billion.
HCA Healthcare reported third-quarter 2022 adjusted earnings of $3.93 per share, beating the Zacks Consensus Estimate by 1%. However, the bottom line dropped 14% year over year. Revenues of HCA decreased 2% year over year to $15 billion in the third quarter and missed the consensus mark by a whisker. Same-facility equivalent admissions rose 2.3% year over year in the third quarter, while same-facility admissions fell 1.5% year over year.