We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will High Expenses Ail Pediatrix Medical's (MD) Q4 Earnings?
Read MoreHide Full Article
Pediatrix Medical Group, Inc. (MD - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 20, 2024, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for Pediatrix Medical’s fourth-quarter earnings per share is pegged at 32 cents, indicating a decline of 31.9% from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $522 million, suggesting 1.6% growth from the year-ago quarter’s reported number.
Earnings Surprise History
Pediatrix Medical’s bottom line beat estimates in one of the trailing four quarters, matched the mark once and missed the same on the remaining two occasions, the average negative surprise being 6.28%. This is depicted in the chart below:
Pediatrix Medical Group, Inc. Price and EPS Surprise
In the fourth quarter, revenues of Pediatrix Medical are likely to have benefited on the back of same-unit pricing growth, which in turn, is expected to have resulted from improved collection rates and payor mix. Higher revenues earned from an expanding hospital-based and office-based women’s and children’s service portfolio are expected to have boosted net patient service revenues. The Zacks Consensus Estimate for net patient service revenues is pegged at $450 million, in line with our estimate.
However, a decline in patient volumes is expected to have exerted strain on the company’s quarterly performance. The consensus mark for same-facility patient volume suggests a 0.2% fall from the year-ago quarter’s reported figure, while our estimate indicates it to dip 0.3% year over year.
MD’s top line is likely to have gained from higher contract and administrative fees received from its hospital partners. The Zacks Consensus Estimate for hospital contract administrative fees is pegged at $71 million, which implies 6% growth from the year-ago quarter’s reported figure. We estimate it to grow 6.4% year over year to $70.7 million in the fourth quarter.
Additionally, its telemedicine services are likely to have fetched a regular revenue stream to the company.
However, a fall in patient volumes and escalating practice-level operating costs are likely to have been a roadblock to Pediatrix Medical’s adjusted EBITDA in the quarter under review. Practice salaries and benefits expenses are expected to have witnessed an increase due to higher same-unit clinical compensation, incentive compensation, malpractice costs and group health insurance expenses. This, in turn, is likely to have dampened margins.
We expect adjusted EBITDA to decrease 21.8% year over year in the fourth quarter. Our estimate for practice salaries and benefits expense is $381.5 million, which indicates an increase of 4.1% year over year.
What Our Quantitative Model Predicts
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 odds of an earnings beat. However, that’s not the case here, as you see below.
Earnings ESP: Pediatrix Medical has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: MD currently has a Zacks Rank #4 (Sell).
Stocks to Consider
While an earnings beat looks uncertain for Pediatrix Medical, here are some companies from the Medical space, which according to our model, have the right combination of elements to beat on earnings this time around:
The Zacks Consensus Estimate for STOK’s fourth-quarter 2023 earnings is pegged at a loss of 62 cents per share, narrower than the prior-year quarter’s loss of 65 cents per share.
Stoke Therapeutics’ bottom line beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 10.81%.
United Therapeutics Corporation (UTHR - Free Report) has an Earnings ESP of +17.98% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for UTHR’s fourth-quarter 2023 earnings is pegged at $3.92 per share, suggesting 46.8% growth from the year-ago quarter’s reported figure.
United Therapeutics’ bottom line beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 1.34%.
Amylyx Pharmaceuticals, Inc. (AMLX - Free Report) has an Earnings ESP of +29.13% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for AMLX’s fourth-quarter 2023 earnings is pegged at 20 cents per share. A loss of 65 cents per share was reported in the prior-year quarter.
Amylyx Pharmaceuticals’ earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 773.61%.
Image: Shutterstock
Will High Expenses Ail Pediatrix Medical's (MD) Q4 Earnings?
Pediatrix Medical Group, Inc. (MD - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 20, 2024, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for Pediatrix Medical’s fourth-quarter earnings per share is pegged at 32 cents, indicating a decline of 31.9% from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $522 million, suggesting 1.6% growth from the year-ago quarter’s reported number.
Earnings Surprise History
Pediatrix Medical’s bottom line beat estimates in one of the trailing four quarters, matched the mark once and missed the same on the remaining two occasions, the average negative surprise being 6.28%. This is depicted in the chart below:
Pediatrix Medical Group, Inc. Price and EPS Surprise
Pediatrix Medical Group, Inc. price-eps-surprise | Pediatrix Medical Group, Inc. Quote
Factors to Note
In the fourth quarter, revenues of Pediatrix Medical are likely to have benefited on the back of same-unit pricing growth, which in turn, is expected to have resulted from improved collection rates and payor mix. Higher revenues earned from an expanding hospital-based and office-based women’s and children’s service portfolio are expected to have boosted net patient service revenues. The Zacks Consensus Estimate for net patient service revenues is pegged at $450 million, in line with our estimate.
However, a decline in patient volumes is expected to have exerted strain on the company’s quarterly performance. The consensus mark for same-facility patient volume suggests a 0.2% fall from the year-ago quarter’s reported figure, while our estimate indicates it to dip 0.3% year over year.
MD’s top line is likely to have gained from higher contract and administrative fees received from its hospital partners. The Zacks Consensus Estimate for hospital contract administrative fees is pegged at $71 million, which implies 6% growth from the year-ago quarter’s reported figure. We estimate it to grow 6.4% year over year to $70.7 million in the fourth quarter.
Additionally, its telemedicine services are likely to have fetched a regular revenue stream to the company.
However, a fall in patient volumes and escalating practice-level operating costs are likely to have been a roadblock to Pediatrix Medical’s adjusted EBITDA in the quarter under review. Practice salaries and benefits expenses are expected to have witnessed an increase due to higher same-unit clinical compensation, incentive compensation, malpractice costs and group health insurance expenses. This, in turn, is likely to have dampened margins.
We expect adjusted EBITDA to decrease 21.8% year over year in the fourth quarter. Our estimate for practice salaries and benefits expense is $381.5 million, which indicates an increase of 4.1% year over year.
What Our Quantitative Model Predicts
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 odds of an earnings beat. However, that’s not the case here, as you see below.
Earnings ESP: Pediatrix Medical has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: MD currently has a Zacks Rank #4 (Sell).
Stocks to Consider
While an earnings beat looks uncertain for Pediatrix Medical, here are some companies from the Medical space, which according to our model, have the right combination of elements to beat on earnings this time around:
Stoke Therapeutics, Inc. (STOK - Free Report) has an Earnings ESP of +22.83% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for STOK’s fourth-quarter 2023 earnings is pegged at a loss of 62 cents per share, narrower than the prior-year quarter’s loss of 65 cents per share.
Stoke Therapeutics’ bottom line beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 10.81%.
United Therapeutics Corporation (UTHR - Free Report) has an Earnings ESP of +17.98% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for UTHR’s fourth-quarter 2023 earnings is pegged at $3.92 per share, suggesting 46.8% growth from the year-ago quarter’s reported figure.
United Therapeutics’ bottom line beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 1.34%.
Amylyx Pharmaceuticals, Inc. (AMLX - Free Report) has an Earnings ESP of +29.13% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for AMLX’s fourth-quarter 2023 earnings is pegged at 20 cents per share. A loss of 65 cents per share was reported in the prior-year quarter.
Amylyx Pharmaceuticals’ earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 773.61%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.