Ensign Group Q3 adjusted EPS beats estimates, revenue up on higher occupancy rates
Overview
US post-acute care provider's Q3 revenue rose 14.5% yr/yr to $1.48 bln
Adjusted EPS for Q3 beat analyst expectations
Company raised full-year earnings and revenue guidance
Outlook
Ensign raises 2026 EPS guidance to $7.94-$8.02 from $7.75-$7.85 per share
Company lifts 2026 revenue outlook to $5.89 bln-$5.92 bln
Company says demand remains strong and expects growth in occupancy and skilled mix to continue
Result Drivers
OCCUPANCY AND SKILLED MIX - Co said higher occupancy rates and an improved skilled mix drove revenue growth, with Medicare growth noted as particularly strong
CLINICAL OUTCOMES - Co attributed demand and revenue growth to strong clinical outcomes and reputation among patients and healthcare partners
ACQUISITION ACTIVITY - Co said recent acquisitions of new operations and facilities contributed to portfolio and revenue growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Rental Revenue | $7.17 mln | ||
Q3 Adjusted EPS | Beat | $2.03 | $1.97 (5 Analysts) |
Q3 EPS | $1.76 | ||
Q3 Net Income | $104.38 mln | ||
Q3 Operating Income | $137.99 mln | ||
Q3 Service Revenue | $1.48 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for The Ensign Group, Inc. is $223.88, about 26.5% above its October 26 closing price of $176.92
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)