The Ensign Group, Inc ENSG reported record adjusted operating earnings of 40 cents per share in fourth-quarter 2017. The bottom line surpassed the Zacks Consensus Estimate of 36 cents. Earnings increased 33.3% year over year owing to higher revenues.
The Ensign Group, Inc. Price, Consensus and EPS Surprise
The Ensign Group, Inc. Price, Consensus and EPS Surprise | The Ensign Group, Inc. Quote
Net income was 21 cents per share, down 40% year over year. Operational Update
Total revenues of $487.7 million increased nearly 12.6% year over year in the reported quarter and also beat the Zacks Consensus Estimate of $459 million.
Same store skilled nursing average daily revenue rates grew 4.9% year over year to $309.89 million. Same store managed care skilled nursing average daily revenue rates climbed 4.5% to $450.58 million, year over year.
Total Transitional and Skilled Services segment income was $39.9 million for the quarter under review, up 40.2% from the prior-year period.
Total Assisted and Independent Living Services segment revenues and income were up 13.7% to $35.8 million and 66.3% to $4.3 million, respectively, year over year.
Total Home Health and Hospice Services segment revenues and income were up 27.5% to $39.7 million and 27.7% to $5.8 million, respectively, year over year.
Total expenses rose 16.2% year over year to $461.6 million, primarily due to higher cost of services and general and administrative expense. Full-Year Highlights
Adjusted operating earnings of $1.40 per share were in line with the Zacks Consensus Estimate.
Total revenues of $1.85 billion increased nearly 11.8% over the level in 2016 and also outpaced the Zacks Consensus Estimate of $1.80 billion. Quarterly Segment Update Transitional, Skilled & Assisted Living Services
The segment reported revenues of $403.5 million, up 11.5% year over year. Solid growth in skilled nursing and facilities drove this upside. Notably, the segment accounted for 82.7% of the total revenues in the fourth quarter. Home Health & Hospice Services
For this segment, total operating revenues were $39.7 billion, up 27.4% year over year. This segment contributed 8.1% to the total revenues. Other Services
This segment reported revenues of $8.7 million, up 1.3% from the prior-year quarter. This segment accounted for 1.8% of the total revenues. Financial Update
Total cash and cash equivalents decreased 26.6% to $42.3 million as of Dec 31, 2017 from $57.7 million as of Dec 31, 2016.
As of Dec 31, 2017, long-term debt was $302.9 million, up from $275.5 million at the end of 2016.
Cash from operations in 2017 was $72.9 million, down 1.3% year over year. Dividend Update
Ensign Group paid 4.50 cents per share, up 5.9% over the past year. 2018 Guidance
Management expects earnings in the range of $1.80-$1.87 per share, up from $1.58 to $1.66.
Revenues are anticipated to remain within the band of $2-$2.06 billion. Zacks Rank & Performance of Other Insurers
Ensign Group carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here
Among other firms in the medical sector having reported fourth-quarter earnings so far, the bottom line of Anthem Inc. ANTM
, Humana Inc. HUM
and UnitedHealth Group Inc. UNH
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Humana Inc. (HUM): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report The Ensign Group, Inc. (ENSG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research