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.
Pediatrix's (MD) Q4 Earnings Miss Due to Soft Patient Volumes
Read MoreHide Full Article
Pediatrix Medical Group, Inc. (MD - Free Report) reported a fourth-quarter 2023 adjusted earnings per share (EPS) of 32 cents, which matched the Zacks Consensus Estimate. The bottom line plunged 31.9% year over year.
Net revenues of $496.4 million slipped 3.4% year over year due to the impact of non-same-unit activity and lower same-unit revenues. The top line missed the consensus mark by 4.9%.
The quarterly results suffered a blow due to a decline in patient volumes, an elevated expense level and the adverse impact of an aggregate non-cash impairment loss related to goodwill and other assets. Nevertheless, the downside was partly offset by a favorable payor mix.
Pediatrix Medical Group, Inc. Price, Consensus and EPS Surprise
Overall same-unit revenues fell 1.5% year over year in the fourth quarter. Same-unit revenues attributable to patient volume decreased 1% year over year.
Same-unit revenues from net reimbursement-related factors dipped 0.5% year over year due to the effect of the financial support received from Pediatrix’s revenue cycle management vendor in the year-ago quarter. Nevertheless, the downside was partly offset by moderate growth in hospital contract administrative fees and payor mix.
Total operating expenses of MD escalated 27.2% year over year to $607.9 million in the quarter under review, higher than our estimate of $480.4 million. The year-over-year increase was due to a rise in practice supplies and other operating expenses, general and administrative expenses, and the recording of a goodwill impairment cost.
General and administrative expenses rose 3.9% year over year to $53.1 million but was lower than our estimate of $57.8 million.
Interest expenses increased 1.3% year over year to $10.1 million due to increased interest rates on the company’s adjustable-rate borrowings, which beat our estimate of $9.9 million.
Adjusted EBITDA of $50.8 million tumbled 23.6% year over year and lagged our estimate of $52 million.
Financial Update (as of Dec 31, 2023)
Pediatrix exited the fourth quarter with cash and cash equivalents of $73.3 million, which increased more than seven-fold from the 2022 end figure.
Total assets of $2.2 billion dropped 5.5% from the figure at 2022 end.
Total debt, net, amounted to $633.3 million, down 2.8% from the figure as of Dec 31, 2022.
Total shareholders’ equity of $849.1 million declined 4.8% from the level at 2022 end.
2024 View Unveiled
Management anticipates adjusted EBITDA to lie between $200 million and $220 million, the mid-point of which indicates a 4.8% improvement from the 2023 figure of $200.4 million.
Interest expense is projected within $39.9-$40.6 million for 2024, the mid-point of which suggests a 4.4% fall from the 2023 figure of $42.1 million.
Depreciation and amortization expenses are estimated at $39 million. Transformation and restructuring related expenses are anticipated at $25 million. Income tax expense is forecasted to stay within $26.65-$32.40 million.
Income from continuing operations attributable to MD is expected to lie between $68.75 million and $83.70 million in 2024.
Of the Medical sector players that have reported fourth-quarter 2023 results so far, the bottom-line results of Integer Holdings Corporation (ITGR - Free Report) , Amgen Inc. (AMGN - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) beat the respective Zacks Consensus Estimate.
Integer Holdings delivered adjusted EPS of $1.39 in the fourth quarter of 2023, which improved 25.2% year over year. The figure topped the Zacks Consensus Estimate by 3.7%. It registered revenues of $413.2 million in the fourth quarter, up 10.9% year over year. The figure surpassed the consensus estimate by 0.3%. Organically, revenues increased 9.5%.
The Medical Sales segment reported revenues of $404.1 million, up 13.3% year over year on a reported basis and 11.9% on an organic basis. Revenues in the Non-Medical segment totaled $9.1 million, down 41.9% year over year both on a reported and organic basis. ITGR’s operating income totaled $43.5 million, reflecting an 18% uptick from the year-ago quarter. Operating margin in the fourth quarter expanded 60 bps to 10.5%.
Amgen’s fourth-quarter 2023 adjusted earnings of $4.71 per share beat the Zacks Consensus Estimate of $4.66. Earnings rose 15% year over year. Total revenues of $8.2 billion marginally beat the consensus estimate of $8.16 billion. Total revenues rose 20% year over year. Total product revenues increased 20% from the year-ago quarter to $7.83 billion (U.S.: $5.87 billion; ex-U.S.: $1.969 billion). Prolia revenues were $1.1 billion, up 12% from the year-ago quarter.
Evenity recorded sales of $318 million in the quarter, up 41% year over year. Xgeva delivered revenues of $527 million, up 9% year over year, driven by higher net selling prices. Adjusted operating margin of AMGN rose 0.8 percentage points to 46.7% in the quarter
Molina Healthcare reported fourth-quarter 2023 adjusted EPS of $4.38, which outpaced the Zacks Consensus Estimate by 1.6%. The bottom line advanced 6.8% year over year. Total revenues rose 10% year over year to $9 billion in the quarter under review. Also, the top line surpassed the consensus mark by 9%.
Premium revenues amounted to $8.4 billion, which grew 5.6% year over year in the fourth quarter. Investment income of $114 million rose nearly one-fold year over year. MOH reported an adjusted net income of $255 million, which advanced 6.3% year over year. The consolidated medical care ratio deteriorated 80 bps year over year to 89.1%. Total membership was around 5 million as of Dec 31, 2023, which declined 5% year over year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Pediatrix's (MD) Q4 Earnings Miss Due to Soft Patient Volumes
Pediatrix Medical Group, Inc. (MD - Free Report) reported a fourth-quarter 2023 adjusted earnings per share (EPS) of 32 cents, which matched the Zacks Consensus Estimate. The bottom line plunged 31.9% year over year.
Net revenues of $496.4 million slipped 3.4% year over year due to the impact of non-same-unit activity and lower same-unit revenues. The top line missed the consensus mark by 4.9%.
The quarterly results suffered a blow due to a decline in patient volumes, an elevated expense level and the adverse impact of an aggregate non-cash impairment loss related to goodwill and other assets. Nevertheless, the downside was partly offset by a favorable payor mix.
Pediatrix Medical Group, Inc. Price, Consensus and EPS Surprise
Pediatrix Medical Group, Inc. price-consensus-eps-surprise-chart | Pediatrix Medical Group, Inc. Quote
Q4 Update
Overall same-unit revenues fell 1.5% year over year in the fourth quarter. Same-unit revenues attributable to patient volume decreased 1% year over year.
Same-unit revenues from net reimbursement-related factors dipped 0.5% year over year due to the effect of the financial support received from Pediatrix’s revenue cycle management vendor in the year-ago quarter. Nevertheless, the downside was partly offset by moderate growth in hospital contract administrative fees and payor mix.
Total operating expenses of MD escalated 27.2% year over year to $607.9 million in the quarter under review, higher than our estimate of $480.4 million. The year-over-year increase was due to a rise in practice supplies and other operating expenses, general and administrative expenses, and the recording of a goodwill impairment cost.
General and administrative expenses rose 3.9% year over year to $53.1 million but was lower than our estimate of $57.8 million.
Interest expenses increased 1.3% year over year to $10.1 million due to increased interest rates on the company’s adjustable-rate borrowings, which beat our estimate of $9.9 million.
Adjusted EBITDA of $50.8 million tumbled 23.6% year over year and lagged our estimate of $52 million.
Financial Update (as of Dec 31, 2023)
Pediatrix exited the fourth quarter with cash and cash equivalents of $73.3 million, which increased more than seven-fold from the 2022 end figure.
Total assets of $2.2 billion dropped 5.5% from the figure at 2022 end.
Total debt, net, amounted to $633.3 million, down 2.8% from the figure as of Dec 31, 2022.
Total shareholders’ equity of $849.1 million declined 4.8% from the level at 2022 end.
2024 View Unveiled
Management anticipates adjusted EBITDA to lie between $200 million and $220 million, the mid-point of which indicates a 4.8% improvement from the 2023 figure of $200.4 million.
Interest expense is projected within $39.9-$40.6 million for 2024, the mid-point of which suggests a 4.4% fall from the 2023 figure of $42.1 million.
Depreciation and amortization expenses are estimated at $39 million. Transformation and restructuring related expenses are anticipated at $25 million. Income tax expense is forecasted to stay within $26.65-$32.40 million.
Income from continuing operations attributable to MD is expected to lie between $68.75 million and $83.70 million in 2024.
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 fourth-quarter 2023 results so far, the bottom-line results of Integer Holdings Corporation (ITGR - Free Report) , Amgen Inc. (AMGN - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) beat the respective Zacks Consensus Estimate.
Integer Holdings delivered adjusted EPS of $1.39 in the fourth quarter of 2023, which improved 25.2% year over year. The figure topped the Zacks Consensus Estimate by 3.7%. It registered revenues of $413.2 million in the fourth quarter, up 10.9% year over year. The figure surpassed the consensus estimate by 0.3%. Organically, revenues increased 9.5%.
The Medical Sales segment reported revenues of $404.1 million, up 13.3% year over year on a reported basis and 11.9% on an organic basis. Revenues in the Non-Medical segment totaled $9.1 million, down 41.9% year over year both on a reported and organic basis. ITGR’s operating income totaled $43.5 million, reflecting an 18% uptick from the year-ago quarter. Operating margin in the fourth quarter expanded 60 bps to 10.5%.
Amgen’s fourth-quarter 2023 adjusted earnings of $4.71 per share beat the Zacks Consensus Estimate of $4.66. Earnings rose 15% year over year. Total revenues of $8.2 billion marginally beat the consensus estimate of $8.16 billion. Total revenues rose 20% year over year. Total product revenues increased 20% from the year-ago quarter to $7.83 billion (U.S.: $5.87 billion; ex-U.S.: $1.969 billion). Prolia revenues were $1.1 billion, up 12% from the year-ago quarter.
Evenity recorded sales of $318 million in the quarter, up 41% year over year. Xgeva delivered revenues of $527 million, up 9% year over year, driven by higher net selling prices. Adjusted operating margin of AMGN rose 0.8 percentage points to 46.7% in the quarter
Molina Healthcare reported fourth-quarter 2023 adjusted EPS of $4.38, which outpaced the Zacks Consensus Estimate by 1.6%. The bottom line advanced 6.8% year over year. Total revenues rose 10% year over year to $9 billion in the quarter under review. Also, the top line surpassed the consensus mark by 9%.
Premium revenues amounted to $8.4 billion, which grew 5.6% year over year in the fourth quarter. Investment income of $114 million rose nearly one-fold year over year. MOH reported an adjusted net income of $255 million, which advanced 6.3% year over year. The consolidated medical care ratio deteriorated 80 bps year over year to 89.1%. Total membership was around 5 million as of Dec 31, 2023, which declined 5% year over year.