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MEDNAX's (MD) Earnings Miss Estimates in Q1, Tumble Y/Y

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MEDNAX, Inc. (MD - Free Report) reported first-quarter 2020 adjusted earnings of 32 cents per share, missing the Zacks Consensus Estimate by 23.8%. Moreover, the bottom line plunged 50.8% year over year.

The company’s results were negatively impacted by the COVID-19 pandemic. In fact, the coronavirus outbreak dented patient volumes as well as revenue.

MEDNAX Inc Price and EPS Surprise

MEDNAX Inc Price and EPS Surprise

MEDNAX Inc price-eps-surprise | MEDNAX Inc Quote

Quarterly Details

The company generated revenues of $846 million, which missed the Zacks Consensus Estimate by 0.6%. Also, the top line slid 0.6% from the year-ago period.

Same unit revenues dipped 1% year over year.

General and administrative expenses inched 3.3% to $105.2 million due to higher general and administrative expenses.

Interest expense of the company declined 10.1% to $27.6 million on the back of lower borrowings.

In the quarter under review, EBITDA totaled $63.4 million, down 39.6% year over year.

The company invested $13.7 million in capital expenditures.

Withdrawal of Preliminary Outlook

Given the current pandemic-led uncertainty, the company scrapped its previously-announced quarterly and 2020 outlook.

Financial Update

As of Mar 31, 2020, the company had cash and cash equivalents of $312 million, up 177% from the level at 2019 end.

The company’s total debt of $2.1 billion was up 21.5% from the level at 2019 end while total assets worth $4.3 billion rose 4.2% from the level at 2019 end.

Cash flow used in operating activities was $146.4 million in the quarter under review, jumping 142.4% year over year.

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.

Performance of Other Players

Of the other players from the same space that reported first-quarter results so far, Tenet Healthcare Corporation’s (THC - Free Report) bottom line beat the Zacks Consensus Estimate while that of HCA Healthcare Inc (HCA - Free Report) and Universal Health Services Inc (UHS - Free Report) missed the mark.

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