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Pediatrix Medical (MD) to Post Q4 Earnings: What to Expect

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Pediatrix Medical Group, Inc. (MD - Free Report) is set to report its fourth-quarter 2022 results on Feb 17, before the opening bell.

In the last reported quarter, the medical services provider’s adjusted earnings per share of 40 cents missed the Zacks Consensus Estimate by 24.5% due to an escalation in practice supplies and other operating expenses, an uptick in practice salaries and benefits and a rise in depreciation and amortization expenses.

Let’s see how things have shaped up prior to the fourth-quarter 2022 earnings announcement.

The Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings per share of 49 cents has witnessed no movement in the past week. The estimate indicates a 5.8% decline from the year-ago quarter’s reported earnings of 52 cents per share. The Zacks Consensus Estimate for revenues is pegged at $501.7 million, suggesting a rise of 0.6% from the year-ago quarter’s reported figure.

Pediatrix Medical’s earnings beat estimates in two of the trailing four quarters, met once and missed on the other occasion, the average surprise being 4%. This is depicted in the graph below.

Factors to Note

With a decline in COVID-related headwinds, utilization of the company’s resources for previously postponed procedures is expected to have improved in the quarter under review. Its exclusive focus on providing specialized services for women, babies and children is likely to have witnessed growing demand, leading to patient volume growth.

The Zacks Consensus Estimate for fourth-quarter same-facility NICU patient days growth is pegged at 0.9%. Also, the consensus mark for same-facility patient volume growth is pegged at 1.6%. Our estimate suggests net patient service revenues to witness marginal improvement from the year-ago quarter.

Further, the consensus mark for same-facility revenue growth is pegged at 2.9%. This is expected to have aided Pediatrix Medical’s fourth-quarter top line. Also, our estimate for hospital contract administrative fees suggests an 8.3% year-over-year increase.

However, an elevated expense level is expected to have put a strain on the company’s margins. Our estimate for total operating expenses suggests a 2.8% year-over-year increase.

Higher practice supplies & other expenses, and general and administrative expenses are likely to have affected the bottom line, positioning the company for a year-over-year decline, making an earnings beat uncertain.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Pediatrix Medical this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: The company’s Earnings ESP is -7.89%. The Most Accurate Estimate is currently pegged at 45 cents per share, lower than the Zacks Consensus Estimate of 49 cents.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Pediatrix Medical currently carries a Zacks Rank #3.

Stocks to Consider

While an earnings beat looks uncertain for Pediatrix Medical, here are some companies in the broader medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

Vir Biotechnology, Inc. (VIR - Free Report) has an Earnings ESP of +338.10% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Vir Biotechnology’s bottom line for the to-be-reported quarter has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. VIR beat earnings estimates in three of the past four quarters and missed once.

SI-BONE, Inc. (SIBN - Free Report) has an Earnings ESP of +5.51% and a Zacks Rank #3.

The Zacks Consensus Estimate for SI-BONE’s bottom line for the to-be-reported quarter indicates a 2.3% improvement from a year ago. The consensus mark for revenues suggests a 26% year-over-year increase.

Merus N.V. (MRUS - Free Report) has an Earnings ESP of +28.91% and is a Zacks #3 Ranked player.

The Zacks Consensus Estimate for Merus’ bottom line for the to-be-reported quarter remained stable over the past week. MRUS beat earnings estimates in all the past four quarters, with an average of 42%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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