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MEDNAX's (MD) Q3 Earnings Meet Estimates, Revenues Miss
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MEDNAX, Inc. (MD - Free Report) reported third-quarter 2020 adjusted earnings of 33 cents per share, which matched the Zacks Consensus Estimate. However, the bottom line plunged 60.7% year over year due to soft revenues.
The COVID-19 pandemic continued to adversely affect the company’s patient volumes and revenues, which in turn, has acted as a drag on its third-quarter results.
Quarterly Details
The company generated revenues of $461 million, which missed the Zacks Consensus Estimate by 13.9%. The top line plunged also slumped 48.1% from the year-ago period. This was due to dented patient volumes stemming from the pandemic.
Same unit revenues inched down 0.4% year over year. Nevertheless, the decline was partially offset by growth stemming from the company’s recent buyouts.
General and administrative expenses increased 4.7% year over year to $66.3 million due to rise in general and administrative expenses.
Total operating expenses increased 8.3% year over year to $440.2 million due to higher practice salaries and benefits, general and administrative expenses, depreciation and amortization, transformational and restructuring related expenses.
Interest expense of the company declined 8.7% to $27.3 million due to lower borrowings.
In the quarter under review, adjusted EBITDA totaled $72.7 million, up 4.9% year over year.
As of Sep 30, 2020, the company had cash and cash equivalents of $294.5 million, which increased nearly three-fold from the level as of Dec 31, 2019.
The company’s total debt, net of $1.7 billion inched up 0.8% from the level at 2019 end, while total assets worth $3.4 billion were down 17.4% from last-year end.
Cash flow generated from operating activities was $127.1 million in the quarter under review, which increased more than two-fold year over year.
Business Update
The company has inked a deal this September to divest MEDNAX Radiology Solutions and intensify focus on Pediatrix and Obstetrix medical groups. It aims to channelize its resources as a pediatrics and obstetrics organization.
Of the medical sector players that have reported third-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate for earnings.
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MEDNAX's (MD) Q3 Earnings Meet Estimates, Revenues Miss
MEDNAX, Inc. (MD - Free Report) reported third-quarter 2020 adjusted earnings of 33 cents per share, which matched the Zacks Consensus Estimate. However, the bottom line plunged 60.7% year over year due to soft revenues.
The COVID-19 pandemic continued to adversely affect the company’s patient volumes and revenues, which in turn, has acted as a drag on its third-quarter results.
Quarterly Details
The company generated revenues of $461 million, which missed the Zacks Consensus Estimate by 13.9%. The top line plunged also slumped 48.1% from the year-ago period. This was due to dented patient volumes stemming from the pandemic.
Same unit revenues inched down 0.4% year over year. Nevertheless, the decline was partially offset by growth stemming from the company’s recent buyouts.
General and administrative expenses increased 4.7% year over year to $66.3 million due to rise in general and administrative expenses.
Total operating expenses increased 8.3% year over year to $440.2 million due to higher practice salaries and benefits, general and administrative expenses, depreciation and amortization, transformational and restructuring related expenses.
Interest expense of the company declined 8.7% to $27.3 million due to lower borrowings.
In the quarter under review, adjusted EBITDA totaled $72.7 million, up 4.9% year over year.
MEDNAX, Inc. Price, Consensus and EPS Surprise
MEDNAX, Inc. price-consensus-eps-surprise-chart | MEDNAX, Inc. Quote
Financial Update
As of Sep 30, 2020, the company had cash and cash equivalents of $294.5 million, which increased nearly three-fold from the level as of Dec 31, 2019.
The company’s total debt, net of $1.7 billion inched up 0.8% from the level at 2019 end, while total assets worth $3.4 billion were down 17.4% from last-year end.
Cash flow generated from operating activities was $127.1 million in the quarter under review, which increased more than two-fold year over year.
Business Update
The company has inked a deal this September to divest MEDNAX Radiology Solutions and intensify focus on Pediatrix and Obstetrix medical groups. It aims to channelize its resources as a pediatrics and obstetrics organization.
Zacks Rank
MEDNAX currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that have reported third-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate for earnings.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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