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Ensign Group (ENSG) Q2 Earnings Beat on Occupancy, Stock Up 7.2%
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Shares of The Ensign Group, Inc. (ENSG - Free Report) gained 7.2% since it reported second-quarter 2024 results on Jul 25, 2024. Strong quarterly results benefited from improved occupancy, skilled mix days, and higher skilled service revenues. However, declining cash flow from operations and a rise in overall expenses acted as a partial offset.
ENSG reported a second-quarter 2024 adjusted earnings per share (EPS) of $1.32, which beat the Zacks Consensus Estimate by 2.3%. The bottom line increased 13.8% year over year.
Operating revenues of $1.04 billion improved 12.5% year over year in the quarter under review. The top line outpaced the consensus mark by 2%.
The Ensign Group, Inc. Price, Consensus and EPS Surprise
Ensign Group’s adjusted net income grew 15.3% year over year to $76.4 million in the second quarter and beat our estimate of $75.2 million.
Same-store occupancy improved 280 basis points (bps) year over year while transitioning occupancy expanded 430 bps year over year.
Total expenses of $950.3 million escalated 12.7 % year over year in the quarter under review and came higher than our estimate of $932.7 million. The year-over-year increase was due to higher costs of services, general and administrative expenses, and rent.
Segmental Update
Skilled Services: The segment’s revenues rose 12.1% year over year to $991.3 million in the second quarter. The metric beat our estimate of $983 million. The metric was supported by improved occupancy and improved patient days. Segment income of $122.2 million improved 4.4% year over year.
Skilled nursing and campus operations of the segment totaled 272 and 29, respectively, at the second-quarter end.
Standard Bearer: Rental revenues amounted to $23.4 million, which grew 17.3% year over year and outpaced our estimate of $22.8 million. The metric was supported by rising acquisitions. Segmental income of $7.4 million rose 3.2% year over year.
Funds from Operations were $14.5 million in the second quarter, which improved 9.5% year over year.
Financial Update (as of Jun 30, 2024)
Ensign Group exited the second quarter with cash and cash equivalents of $477.3 million, which declined 6.3% from the 2023-end figure. It had a leftover capacity of $573.1 million under its line of credit at the second-quarter end.
Total assets of $4.4 billion rose 6.2% from the 2023-end level.
Long-term debt-less current maturities were $143.6 million, which declined 1.3% from the figure as of Dec 31, 2023. Current maturities of long-term debt amounted to $4 million.
Total equity of $1.7 billion climbed nearly 11.1% from the 2023-end figure.
ENSG generated net cash from operations of $112.2 million in the first half of 2024, which plunged 33.2% from the year-ago figure.
Capital-Deployment Update
Ensign Group did not buy back shares in the first half. During the first half of 2024, management paid dividends worth $6.8 million.
2024 Outlook Raised
Revenues are anticipated to lie within $4.20-$4.22 billion, the mid-point of which indicates an improvement of 12.9% from the 2023 figure of $3.73 billion.
Adjusted EPS is forecasted to be between $5.38 and $5.50 for 2024, the midpoint of which suggests more than 14% growth from the 2023 figure of $4.77.
The weighted average common shares outstanding is estimated to be around 58.5 million, and the tax rate is assumed to be 25% for 2024.
Zacks Rank
Ensign Group currently carries a Zacks Rank #4 (Sell).
Of the Medical sector players that have reported second-quarter 2024 results so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health, Inc. (ELV - Free Report) , and HCA Healthcare, Inc. (HCA - Free Report) beat the Zacks Consensus Estimate.
UnitedHealth Group reported a second-quarter 2024 adjusted EPS of $6.80, which beat the Zacks Consensus Estimate by 2.3%. The bottom line rose 10.7% year over year. Revenues amounted to $98.9 billion, which improved 6.4% year over year in the quarter under review on the back of strong performance in its UnitedHealthcare and Optum business lines. The top line outpaced the consensus mark of $98.7 billion.
Elevance Health reported second-quarter 2024 adjusted EPS of $10.12 per share, which outpaced the Zacks Consensus Estimate by 1.3%. The bottom line improved 12% year over year. Operating revenues of $43.2 billion dipped 0.4% year over year. However, the top line beat the consensus mark by 0.5%.
HCA Healthcare reported a second-quarter 2024 adjusted EPS of $5.50, which beat the Zacks Consensus Estimate by 10.7%. The bottom line improved 28.2% year over year. Revenues amounted to $17.5 billion, which improved 10.3% year over year in the quarter under review. The top line outpaced the consensus mark by 2.2%.
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Ensign Group (ENSG) Q2 Earnings Beat on Occupancy, Stock Up 7.2%
Shares of The Ensign Group, Inc. (ENSG - Free Report) gained 7.2% since it reported second-quarter 2024 results on Jul 25, 2024. Strong quarterly results benefited from improved occupancy, skilled mix days, and higher skilled service revenues. However, declining cash flow from operations and a rise in overall expenses acted as a partial offset.
ENSG reported a second-quarter 2024 adjusted earnings per share (EPS) of $1.32, which beat the Zacks Consensus Estimate by 2.3%. The bottom line increased 13.8% year over year.
Operating revenues of $1.04 billion improved 12.5% year over year in the quarter under review. The top line outpaced the consensus mark by 2%.
The Ensign Group, Inc. Price, Consensus and EPS Surprise
The Ensign Group, Inc. price-consensus-eps-surprise-chart | The Ensign Group, Inc. Quote
Q2 Update
Ensign Group’s adjusted net income grew 15.3% year over year to $76.4 million in the second quarter and beat our estimate of $75.2 million.
Same-store occupancy improved 280 basis points (bps) year over year while transitioning occupancy expanded 430 bps year over year.
Total expenses of $950.3 million escalated 12.7 % year over year in the quarter under review and came higher than our estimate of $932.7 million. The year-over-year increase was due to higher costs of services, general and administrative expenses, and rent.
Segmental Update
Skilled Services: The segment’s revenues rose 12.1% year over year to $991.3 million in the second quarter. The metric beat our estimate of $983 million. The metric was supported by improved occupancy and improved patient days. Segment income of $122.2 million improved 4.4% year over year.
Skilled nursing and campus operations of the segment totaled 272 and 29, respectively, at the second-quarter end.
Standard Bearer: Rental revenues amounted to $23.4 million, which grew 17.3% year over year and outpaced our estimate of $22.8 million. The metric was supported by rising acquisitions. Segmental income of $7.4 million rose 3.2% year over year.
Funds from Operations were $14.5 million in the second quarter, which improved 9.5% year over year.
Financial Update (as of Jun 30, 2024)
Ensign Group exited the second quarter with cash and cash equivalents of $477.3 million, which declined 6.3% from the 2023-end figure. It had a leftover capacity of $573.1 million under its line of credit at the second-quarter end.
Total assets of $4.4 billion rose 6.2% from the 2023-end level.
Long-term debt-less current maturities were $143.6 million, which declined 1.3% from the figure as of Dec 31, 2023. Current maturities of long-term debt amounted to $4 million.
Total equity of $1.7 billion climbed nearly 11.1% from the 2023-end figure.
ENSG generated net cash from operations of $112.2 million in the first half of 2024, which plunged 33.2% from the year-ago figure.
Capital-Deployment Update
Ensign Group did not buy back shares in the first half. During the first half of 2024, management paid dividends worth $6.8 million.
2024 Outlook Raised
Revenues are anticipated to lie within $4.20-$4.22 billion, the mid-point of which indicates an improvement of 12.9% from the 2023 figure of $3.73 billion.
Adjusted EPS is forecasted to be between $5.38 and $5.50 for 2024, the midpoint of which suggests more than 14% growth from the 2023 figure of $4.77.
The weighted average common shares outstanding is estimated to be around 58.5 million, and the tax rate is assumed to be 25% for 2024.
Zacks Rank
Ensign Group 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 second-quarter 2024 results so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health, Inc. (ELV - Free Report) , and HCA Healthcare, Inc. (HCA - Free Report) beat the Zacks Consensus Estimate.
UnitedHealth Group reported a second-quarter 2024 adjusted EPS of $6.80, which beat the Zacks Consensus Estimate by 2.3%. The bottom line rose 10.7% year over year. Revenues amounted to $98.9 billion, which improved 6.4% year over year in the quarter under review on the back of strong performance in its UnitedHealthcare and Optum business lines. The top line outpaced the consensus mark of $98.7 billion.
Elevance Health reported second-quarter 2024 adjusted EPS of $10.12 per share, which outpaced the Zacks Consensus Estimate by 1.3%. The bottom line improved 12% year over year. Operating revenues of $43.2 billion dipped 0.4% year over year. However, the top line beat the consensus mark by 0.5%.
HCA Healthcare reported a second-quarter 2024 adjusted EPS of $5.50, which beat the Zacks Consensus Estimate by 10.7%. The bottom line improved 28.2% year over year. Revenues amounted to $17.5 billion, which improved 10.3% year over year in the quarter under review. The top line outpaced the consensus mark by 2.2%.