Back to top

Image: Bigstock

What's in Store for Ensign Group's (ENSG) Earnings in Q1?

Read MoreHide Full Article

The Ensign Group, Inc. (ENSG - Free Report) is slated to report first-quarter 2020 results on May 11.

In the last reported quarter, the company delivered adjusted operating earnings of 60 cents per share, beating the Zacks Consensus Estimate by 9.1%. Also, the metric improved 11.1% year over year on higher revenues.

The Zacks Consensus Estimate for the company’s earnings per share is pegged at 62 cents, reflecting an upside of 12.7% from the year-ago reported figure. The consensus mark for revenues is pegged at $579 million, suggesting an increase of 5.5% from the year-ago  reported figure.

Let’s see how things shaped up for this announcement.

The company is likely to have gained from its revenues in the to-be-reported quarter. It is likely to have witnessed growth in skilled mix days and revenues across same stores in the quarter under review.

Ensign Group’s top line is likely to have gained traction from its Medicaid and Medicare lines of businesses. However, the same might have been partly offset by the cancellation of elective surgeries per the government order.

The company’s home health and hospice business is likely to have benefited amid the current environment of uncertainty in the first quarter.

However, expenses in the quarter are expected to have persistently escalated due to higher cost of services, rent, general and administrative expenses plus depreciation and amortization. The company might have also incurred additional expenses on account of the COVID-19 pandemic.

Also, shares bought back during the to-be-reported quarter are likely to have aided the company’s bottom line.

Earnings Surprise History

The company flaunts an attractive earnings surprise record. Its bottom line surpassed estimates in three of the trailing four quarters and missed in one, the positive surprise being 2.3%, on average.

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for Ensign Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Earnings ESP: Ensign Group has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 62 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.

The Ensign Group Inc Price and EPS Surprise

The Ensign Group Inc Price and EPS Surprise

The Ensign Group Inc price-eps-surprise | The Ensign Group Inc Quote

Zacks Rank: Ensign Group carries a Zacks Rank #2.

Stocks to Consider

Some stocks worth considering from the same space with the perfect combination of elements to surpass estimates this reporting cycle are as follows:

bluebird bio, Inc. (BLUE - Free Report) has an Earnings ESP of +15.25% and a Zacks Rank of 2.

Aurora Cannabis Inc (ACB - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #3.

AMN Healthcare Services, Inc (AMN - Free Report) has an Earnings ESP of 0.32% and a Zacks Rank of 3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>