Envision Healthcare Corp. reported first-quarter earnings of 65 cents per share that beat the Zacks Consensus Estimate by 14%. Earnings were, however, down 5.8% year over year.
Better-than-expected earnings were driven by revenue growth at the company’s Physicians Services segment.
Adjusted EBITDA for the first quarter came at $207.6 million, down 1.3% year over year.
Envision Healthcare Corporation Price, Consensus and EPS Surprise
The company reported net revenues of $2.08 billion, which beat the Zacks Consensus Estimate by 2.8% and improved 10.7% year over year.
Total operating expenses of $1.92 billion increased 11.4% year over year, due to higher salaries and benefits and operating cost.
Mixed Segment Performance
Net revenues from the segment were $1.77 billion, reflecting an increase of 13.2% year over year. The revenue growth was driven by 8.2% contribution from acquisitions and 2.7% from same contracts and 2.3% from new contracts.
Adjusted EBITDA was $150.1 million, unchanged year over year.
Net revenues were $307.6 million, down 2.6% year over year, led by weather- and flu-related procedure cancellations.
For the reported quarter, adjusted EBITDA was $57.5 million, down 4.5% year over year.
Envision Healthcare had cash and cash equivalents of $767.4 million, down 1.4% year over year.
At Mar 31, 2018, Envision had total debt outstanding of $4.7 billion. The company’s ratio of total net debt to EBIDTA ratio was 4.2 times at the end of first-quarter 2018.
Net cash provided by operating activities was $37.3 million as of Mar 31, 2018, down from $98.1 million as of Mar 31, 2017.
Second-Quarter 2018 Guidance
The company expects adjusted EPS within the range of 83 cents and 90 cents and adjusted EBITDA in the band of $234-$246 million.
Full-Year 2018 Guidance
The company affirmed its previously provided revenue guidance for 2018, which calls for net revenues in the range of $8.35 billion to $8.53 billion. It, however, pulled up the lower end of the guidance for adjusted EBIDTA and adjusted EPS.
The company expects adjusted EBIDTA of $965 million to $1 billion (versus $960 million to $1 billion) and adjusted EPS between $3.49 and $3.70 (versus $3.46 and $3.70).
Zacks Rank & Other Releases
Envision Healthcare carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other firms in the medical sector that have reported fourth-quarter earnings so far, the bottom line at Centene Corp. (CNC - Free Report) , Aetna Inc and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>