We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Why Is Pediatrix Medical Group (MD) Down 1.7% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Pediatrix Medical Group (MD - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pediatrix Medical Group due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Pediatrix Medical Group, Inc. before we dive into how investors and analysts have reacted as of late.
Pediatrix Medical Q1 Earnings Beat Estimates on Same-Unit Strength
Pediatrix Medical reported first-quarter 2026 adjusted earnings per share (EPS) of 44 cents, which beat the Zacks Consensus Estimate by 18.9%. The bottom line increased 33.3% year over year.
Net revenues increased 3.9% year over year to $476.2 million. The top line exceeded the Zacks Consensus Estimate by 2%.
The strong performance was driven by improved reimbursements, along with contributions from recent acquisitions and better same-unit performance. However, these gains were partly offset by lower patient volumes and slightly higher operating costs.
MD’s Q1 Update
Same-unit revenues increased 2.8% year over year, beating the Zacks Consensus Estimate. Same-unit revenues from patient service volumes declined 1.6% year over year.
Same-unit revenues from net reimbursement-related factors grew 4.4% year over year. This growth was supported by improved cash collections, higher administrative fees from hospital contracts, more patient cases and a slightly better payor mix. This metric exceeded both the Zacks Consensus Estimate and our model estimate of 1%.
Total operating expenses were $434.5 million, up 1.9% year over year. The figure was higher than our estimate of $426.1 million. The year-over-year increase was primarily due to higher depreciation and amortization and general and administrative expenses.
Practice salaries and benefits totaled $345.7 million, up 2.6% year over year, mainly due to higher same-unit clinical salary expenses. Interest expense decreased 9.7% year over year to $8.3 million. The figure was below our estimate of $8.9 million due to lower interest rates and borrowings.
Adjusted EBITDA rose 18.3% year over year to $58.2 million, driven by favorable same-unit performance and contributions from recent acquisitions.
MD’s Financial Update (as of March 31, 2026)
Pediatrix Medical exited the first quarter of 2026 with cash and cash equivalents of $205.8 million, down from $375.2 million as of Dec. 31, 2025. There were no outstanding borrowings on its revolving credit facility at the end of the quarter.
Total assets of $2.1 billion decreased from $2.2 billion at the end of 2025.
Total debt, including finance leases, net was $590.8 million, which fell from $597.3 million at the end of 2025.
Total shareholders’ equity of $878.6 million improved from $865.9 million at the end of 2025.
Operating cash outflow was $129.8 million compared with $117.5 million in the year-ago quarter.
MD’s Share Repurchase Update
During the first quarter of 2026, the company repurchased 1 million shares for $19.9 million. As of March 31, 2026, $146.3 million was available under the buyback program.
MD’s 2026 View
Management has reaffirmed its guidance for adjusted EBITDA at $280-$300 million for 2026.
Net income is estimated to be between $152.1 million and $166.7 million for 2026. Interest expenses are currently forecasted to be $33.5 million. Income tax expenses are expected to be in the range of $56.3-$61.7 million.
Depreciation and amortization expenses are now estimated to be $24.8 million. Transformational and restructuring-related expenses are anticipated to be $13.3 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Pediatrix Medical Group has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top 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 this revision looks promising. It comes with little surprise Pediatrix Medical Group has a Zacks Rank #2 (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 - Free Report) , a stock from the same industry, has gained 0.8%. The company reported its results for the quarter ended March 2026 more than a month ago.
Labcorp reported revenues of $3.54 billion in the last reported quarter, representing a year-over-year change of +5.8%. EPS of $4.25 for the same period compares with $3.84 a year ago.
Labcorp is expected to post earnings of $4.79 per share for the current quarter, representing a year-over-year change of +10.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Labcorp. Also, the stock has a VGM Score of A.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Pediatrix Medical Group (MD) Down 1.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Pediatrix Medical Group (MD - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pediatrix Medical Group due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Pediatrix Medical Group, Inc. before we dive into how investors and analysts have reacted as of late.
Pediatrix Medical Q1 Earnings Beat Estimates on Same-Unit Strength
Pediatrix Medical reported first-quarter 2026 adjusted earnings per share (EPS) of 44 cents, which beat the Zacks Consensus Estimate by 18.9%. The bottom line increased 33.3% year over year.
Net revenues increased 3.9% year over year to $476.2 million. The top line exceeded the Zacks Consensus Estimate by 2%.
The strong performance was driven by improved reimbursements, along with contributions from recent acquisitions and better same-unit performance. However, these gains were partly offset by lower patient volumes and slightly higher operating costs.
MD’s Q1 Update
Same-unit revenues increased 2.8% year over year, beating the Zacks Consensus Estimate. Same-unit revenues from patient service volumes declined 1.6% year over year.
Same-unit revenues from net reimbursement-related factors grew 4.4% year over year. This growth was supported by improved cash collections, higher administrative fees from hospital contracts, more patient cases and a slightly better payor mix. This metric exceeded both the Zacks Consensus Estimate and our model estimate of 1%.
Total operating expenses were $434.5 million, up 1.9% year over year. The figure was higher than our estimate of $426.1 million. The year-over-year increase was primarily due to higher depreciation and amortization and general and administrative expenses.
Practice salaries and benefits totaled $345.7 million, up 2.6% year over year, mainly due to higher same-unit clinical salary expenses. Interest expense decreased 9.7% year over year to $8.3 million. The figure was below our estimate of $8.9 million due to lower interest rates and borrowings.
Adjusted EBITDA rose 18.3% year over year to $58.2 million, driven by favorable same-unit performance and contributions from recent acquisitions.
MD’s Financial Update (as of March 31, 2026)
Pediatrix Medical exited the first quarter of 2026 with cash and cash equivalents of $205.8 million, down from $375.2 million as of Dec. 31, 2025. There were no outstanding borrowings on its revolving credit facility at the end of the quarter.
Total assets of $2.1 billion decreased from $2.2 billion at the end of 2025.
Total debt, including finance leases, net was $590.8 million, which fell from $597.3 million at the end of 2025.
Total shareholders’ equity of $878.6 million improved from $865.9 million at the end of 2025.
Operating cash outflow was $129.8 million compared with $117.5 million in the year-ago quarter.
MD’s Share Repurchase Update
During the first quarter of 2026, the company repurchased 1 million shares for $19.9 million. As of March 31, 2026, $146.3 million was available under the buyback program.
MD’s 2026 View
Management has reaffirmed its guidance for adjusted EBITDA at $280-$300 million for 2026.
Net income is estimated to be between $152.1 million and $166.7 million for 2026. Interest expenses are currently forecasted to be $33.5 million. Income tax expenses are expected to be in the range of $56.3-$61.7 million.
Depreciation and amortization expenses are now estimated to be $24.8 million. Transformational and restructuring-related expenses are anticipated to be $13.3 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Pediatrix Medical Group has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top 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 this revision looks promising. It comes with little surprise Pediatrix Medical Group has a Zacks Rank #2 (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 - Free Report) , a stock from the same industry, has gained 0.8%. The company reported its results for the quarter ended March 2026 more than a month ago.
Labcorp reported revenues of $3.54 billion in the last reported quarter, representing a year-over-year change of +5.8%. EPS of $4.25 for the same period compares with $3.84 a year ago.
Labcorp is expected to post earnings of $4.79 per share for the current quarter, representing a year-over-year change of +10.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Labcorp. Also, the stock has a VGM Score of A.