It has been about a month since the last earnings report for Pediatrix Medical Group (MD Quick QuoteMD - Free Report) . Shares have added about 11.1% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Pediatrix Medical 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 latest earnings report in order to get a better handle on the important catalysts.

Pediatrix Medical Q3 Earnings Beat Estimates on Declining Expenses

Pediatrix Medical reported third-quarter 2025 adjusted earnings per share (EPS) of 67 cents, which surpassed the Zacks Consensus Estimate by 45.7%. The bottom line surged 52.3% year over year.

Net revenues tumbled 3.6% year over year to $492.9 million. Nevertheless, the top line beat the consensus mark by 1.8%.

The quarterly results were aided by higher collection activity, improved patient acuity and a favorable payor mix, along with a sharp decline in operating expenses. However, the upside was partly offset by a drop in net revenues resulting from the adverse impact of practice dispositions.

MD’s Q3 Update

Same-unit revenues advanced 8% year over year, which beat our growth estimate of 3.4%. Same-unit revenues, attributable to patient volume, rose 0.4% year over year in the quarter under review.

Same-unit revenues from net reimbursement-related factors grew 7.6% year over year on the back of improved patient acuity in its hospital-based practices, favorable collection activity and higher administrative fees from hospital partners. The metric beat our growth estimate of 2.1%.

Total operating expenses of $424.8 million decreased 11% year over year and came lower than our estimate of $425.1 million. The year-over-year decline resulted from lower practice salaries and benefits, practice supplies and other operating expenses, and transformational and restructuring-related costs.

Practice salaries and benefits of Pediatrix Medical came in at $332.3 million, which fell 8.9% year over year due to the impact of practice dispositions. Interest expenses decreased 11.7% year over year to $8.9 million, lower than our estimate of $9.3 million.

Net income totaled $71.7 million compared with the prior-year quarter’s figure of $19.4 million. Adjusted EBITDA rose 45% year over year to $87.3 million, which surpassed our estimate of $59.9 million.

MD’s Financial Update (as of Sept. 30, 2025)

Pediatrix Medical exited the third quarter with cash and cash equivalents of $340.1 million, which rose 47.9% from the 2024-end level. There were no outstanding borrowings on its revolving credit facility at the quarter-end.

Total assets of $2.2 billion rose 2.2% from the figure at 2024-end.

Total debt, including finance leases, net, amounted to $602.5 million, down 2.5% from the figure as of Dec. 31, 2024.

Total shareholders’ equity of $890.7 million improved 16.4% from the 2024-end level.

MD generated net cash from operations of $157 million in the first nine months of 2025 compared with $73.6 million in the prior-year comparable period.

Share Repurchase Update for MD

Pediatrix Medical bought back common shares for $20.9 million in the first nine months of 2025. It had a leftover capacity of $229.1 million under its $250 million repurchase program (approved in August 2025) as of Sept. 30, 2025.

MD’s 2025 View

Management now projects adjusted EBITDA within $270-$290 million, up from the prior view of $245-$255 million.

Net income is estimated to be between $155.90 million and $170.50 million for 2025, higher than the earlier guidance of $126.02-$133.32 million.

Interest expenses are currently forecasted at $36.16 million for 2025. Income tax expenses are expected to be in the range of $57.61-$63.01 million.

Depreciation and amortization expenses are now estimated to be $22.51 million. Transformational and restructuring-related expenses are expected to be $18.72 million at present.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 12.73% due to these changes.

VGM Scores

At this time, Pediatrix Medical Group has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Pediatrix Medical Group has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Pediatrix Medical Group is part of the Zacks Medical Services industry. Over the past month, Labcorp Holdings (LH Quick QuoteLH - Free Report) , a stock from the same industry, has gained 5.4%. The company reported its results for the quarter ended September 2025 more than a month ago.

Labcorp reported revenues of $3.56 billion in the last reported quarter, representing a year-over-year change of +8.6%. EPS of $4.18 for the same period compares with $3.50 a year ago.

Labcorp is expected to post earnings of $3.95 per share for the current quarter, representing a year-over-year change of +14.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.

Labcorp has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.