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The Ensign Group, Inc (ENSG - Free Report) delivered third-quarter adjusted operating earnings of 46 cents per share, beating the Zacks Consensus Estimate of 45 cents. Earnings improved 27.8% year over year owing to consistent financial results across business lines.
The Ensign Group, Inc. Price, Consensus and EPS Surprise
Net income for the quarter under review was $25 million, up 32.6 % year over year.
Operational Update
Total revenues of $514 million increased 8.9% year over year in the reported quarter and also beat the Zacks Consensus Estimate of $509 million by 0.9%. This upside was backed by solid segmental performances.
Total Transitional and Skilled Services segment income was $46.4 million for the quarter under consideration, up 25.7% from the prior-year period.
Total Assisted and Independent Living Services segment’s revenues and income were up 7.3% to $38.1 million and 9% to $4.7 million, respectively, year over year.
Segmental revenues and income at Total Home Health and Hospice Services were up 23.1% to $44.3 million and 55.4% to $7.3 million, each on a year-over-year basis.
Total expenses rose 10.5% year over year to $493 million due to higher cost of services and general and administrative expenses.
Quarterly Segment Update
Transitional and Skilled Services
This segment generated revenues of $429 million, up 8.9% year over year. Solid growth in the number of facilities and patient days boosted this impressive result. Notably, the segment accounted for 82.2% of the total revenues in the quarter under review.
Assisted and Independent Living Services
This segment generated operating revenues of $38 million, up 7.3% year over year with the segment contributing 7.3% to the company’s top line.
Home Health & Hospice Services
For this segment, total operating revenues were $44 billion, up 23.1% year over year. This segment represented 8.3% to the total revenues.
Other Services
This segment delivered revenues of $10.7 million, soaring 77% from the prior-year quarter. This segment reflected 2% of the total revenue base.
Financial Update
Total cash and cash equivalents increased 7% to $45 million from the year-end 2017 level.
As of Sep 30, 2018, long-term debt less current maturities was $245 million, down 19% from 2017-end level.
Cash from operations in the first nine months of 2018 was $157 million.
Dividend Update
Ensign Group paid a quarterly cash dividend of 4.50 cents per share during the third quarter. The company has been hiking its dividend for the last 16 years.
2018 Guidance
Management now expects its earnings to be in the range of $1.83-$1.88 per share, up from the band of $1.80-$1.87.
UnitedHealth Group Incorporated’s (UNH - Free Report) third-quarter bottom line beat estimates on the back of higher revenues.
Centene Inc.’s (CNC - Free Report) third-quarter earnings surpassed estimates, majorly driven by the company’s execution of its growth strategy and solid operating metrics.
Community Health Systems, Inc.’s (CYH - Free Report) loss wider than estimated is due to lower admissions in the reported quarter.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Ensign Group's (ENSG) Q3 Earnings Beat Mark, Increase Y/Y
The Ensign Group, Inc (ENSG - Free Report) delivered third-quarter adjusted operating earnings of 46 cents per share, beating the Zacks Consensus Estimate of 45 cents. Earnings improved 27.8% year over year owing to consistent financial results across business lines.
The Ensign Group, Inc. Price, Consensus and EPS Surprise
The Ensign Group, Inc. Price, Consensus and EPS Surprise | The Ensign Group, Inc. Quote
Net income for the quarter under review was $25 million, up 32.6 % year over year.
Operational Update
Total revenues of $514 million increased 8.9% year over year in the reported quarter and also beat the Zacks Consensus Estimate of $509 million by 0.9%. This upside was backed by solid segmental performances.
Total Transitional and Skilled Services segment income was $46.4 million for the quarter under consideration, up 25.7% from the prior-year period.
Total Assisted and Independent Living Services segment’s revenues and income were up 7.3% to $38.1 million and 9% to $4.7 million, respectively, year over year.
Segmental revenues and income at Total Home Health and Hospice Services were up 23.1% to $44.3 million and 55.4% to $7.3 million, each on a year-over-year basis.
Total expenses rose 10.5% year over year to $493 million due to higher cost of services and general and administrative expenses.
Quarterly Segment Update
Transitional and Skilled Services
This segment generated revenues of $429 million, up 8.9% year over year. Solid growth in the number of facilities and patient days boosted this impressive result. Notably, the segment accounted for 82.2% of the total revenues in the quarter under review.
Assisted and Independent Living Services
This segment generated operating revenues of $38 million, up 7.3% year over year with the segment contributing 7.3% to the company’s top line.
Home Health & Hospice Services
For this segment, total operating revenues were $44 billion, up 23.1% year over year. This segment represented 8.3% to the total revenues.
Other Services
This segment delivered revenues of $10.7 million, soaring 77% from the prior-year quarter. This segment reflected 2% of the total revenue base.
Financial Update
Total cash and cash equivalents increased 7% to $45 million from the year-end 2017 level.
As of Sep 30, 2018, long-term debt less current maturities was $245 million, down 19% from 2017-end level.
Cash from operations in the first nine months of 2018 was $157 million.
Dividend Update
Ensign Group paid a quarterly cash dividend of 4.50 cents per share during the third quarter. The company has been hiking its dividend for the last 16 years.
2018 Guidance
Management now expects its earnings to be in the range of $1.83-$1.88 per share, up from the band of $1.80-$1.87.
Zacks Rank
Ensign Group carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Stock Buy) stocks here.
Releases From the Medical Sector
UnitedHealth Group Incorporated’s (UNH - Free Report) third-quarter bottom line beat estimates on the back of higher revenues.
Centene Inc.’s (CNC - Free Report) third-quarter earnings surpassed estimates, majorly driven by the company’s execution of its growth strategy and solid operating metrics.
Community Health Systems, Inc.’s (CYH - Free Report) loss wider than estimated is due to lower admissions in the reported quarter.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>