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Ensign Expands Presence in Nebraska With Two Acquisitions
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The Ensign Group, Inc. (ENSG - Free Report) recently announced the acquisition of the real estate and operations of two healthcare facilities in Norfolk, NE. The acquisition includes St. Joseph Rehabilitation and Care Center, an 83-bed skilled nursing facility and Skyview Villa Assisted Living, a 20-bed assisted living facility. These acquisitions were completed through a subsidiary of ENSG’s captive real estate entity, Standard Bearer Healthcare REIT, Inc., and took effect on Oct. 1, 2024.
These moves bode well for ENSG as it will solidify its presence in Nebraska and bolster its Standard Bearer’s Midwest portfolio. ENSG’s portfolio now consists of 324 healthcare operations across 14 states, with 30 facilities offering senior living services. Standard Bearer rental revenues increased 17.3% year over year in the second quarter of 2024. It currently owns 123 real estate assets.
These buyouts provide an opportunity for Ensign Group to follow a collaborative approach with the team of caregivers at the acquired facilities and gain an in-depth understanding of the local communities’ needs. This, in turn, enables ENSG to bring about improved health outcomes for individuals across several communities. Moves like these should aid the company in achieving its 2024 revenue growth outlook of 12.9% year over year.
Moves similar to the latest one bring about an increase in the count of skilled nursing facilities as a result of which the healthcare provider can cater to a higher patient base. This, in turn, is likely to drive revenues of the Skilled Services segment, which generates revenues from Medicaid, Medicare, managed care, commercial insurance and private pay. Skilled services revenues rose 12.1% year over year in the second quarter of 2024.
ENSG’s Price Performance
Shares of Ensign have gained 15% in the past three months compared with the industry’s 10.5% growth.
The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 51% year-over-year growth. UHS witnessed two upward estimate revisions over the past 60 days against no movement in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 14.6%.
The Zacks Consensus Estimate for HCA Healthcare’s 2024 bottom line is pegged at $22.46 per share, which indicates 18.2% growth from a year ago. During the past 30 days, HCA witnessed three upward estimate revisions against none in the opposite direction. It beat earnings estimates in three of the last four quarters and missed once, with the average surprise being 8.2%.
The Zacks Consensus Estimate for Acadia Healthcare’s current-year earnings implies a 2% improvement from the year-ago reported figure. ACHC beat earnings estimates in each of the last four quarters, with an average surprise of 4.5%. The consensus mark for its current-year revenues is pegged at $3.2 billion, which indicates a 9.5% year-over-year increase.
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Ensign Expands Presence in Nebraska With Two Acquisitions
The Ensign Group, Inc. (ENSG - Free Report) recently announced the acquisition of the real estate and operations of two healthcare facilities in Norfolk, NE. The acquisition includes St. Joseph Rehabilitation and Care Center, an 83-bed skilled nursing facility and Skyview Villa Assisted Living, a 20-bed assisted living facility. These acquisitions were completed through a subsidiary of ENSG’s captive real estate entity, Standard Bearer Healthcare REIT, Inc., and took effect on Oct. 1, 2024.
These moves bode well for ENSG as it will solidify its presence in Nebraska and bolster its Standard Bearer’s Midwest portfolio. ENSG’s portfolio now consists of 324 healthcare operations across 14 states, with 30 facilities offering senior living services. Standard Bearer rental revenues increased 17.3% year over year in the second quarter of 2024. It currently owns 123 real estate assets.
These buyouts provide an opportunity for Ensign Group to follow a collaborative approach with the team of caregivers at the acquired facilities and gain an in-depth understanding of the local communities’ needs. This, in turn, enables ENSG to bring about improved health outcomes for individuals across several communities. Moves like these should aid the company in achieving its 2024 revenue growth outlook of 12.9% year over year.
Moves similar to the latest one bring about an increase in the count of skilled nursing facilities as a result of which the healthcare provider can cater to a higher patient base. This, in turn, is likely to drive revenues of the Skilled Services segment, which generates revenues from Medicaid, Medicare, managed care, commercial insurance and private pay. Skilled services revenues rose 12.1% year over year in the second quarter of 2024.
ENSG’s Price Performance
Shares of Ensign have gained 15% in the past three months compared with the industry’s 10.5% growth.
Image Source: Zacks Investment Research
ENSG’s Zacks Rank & Other Key Picks
Ensign currently carries a Zacks Rank #2 (Buy).
Investors can look at some other top-ranked stocks in the broader Medical space, like Universal Health Services, Inc. (UHS - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Acadia Healthcare Company, Inc. (ACHC - Free Report) . Each stock presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 51% year-over-year growth. UHS witnessed two upward estimate revisions over the past 60 days against no movement in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 14.6%.
The Zacks Consensus Estimate for HCA Healthcare’s 2024 bottom line is pegged at $22.46 per share, which indicates 18.2% growth from a year ago. During the past 30 days, HCA witnessed three upward estimate revisions against none in the opposite direction. It beat earnings estimates in three of the last four quarters and missed once, with the average surprise being 8.2%.
The Zacks Consensus Estimate for Acadia Healthcare’s current-year earnings implies a 2% improvement from the year-ago reported figure. ACHC beat earnings estimates in each of the last four quarters, with an average surprise of 4.5%. The consensus mark for its current-year revenues is pegged at $3.2 billion, which indicates a 9.5% year-over-year increase.