MD Gains 11% Since Q4 Earnings Release, Unveils '25 View

Pediatrix Medical Group, Inc. MD shares rose 10.6% since it reported fourth-quarter 2024 results on Feb. 20, 2025. The quarterly results benefited on the back of strong same-unit revenue growth, improved payor mix and higher hospital contract administrative fees. A decline in the overall expense level also contributed to the upside. However, the upside was partly offset by higher same-unit clinical compensation costs.See the Zacks Earnings Calendar to stay ahead of market-making news.MD reported fourth-quarter 2024 adjusted earnings per share (EPS) of 51 cents, which surpassed the Zacks Consensus Estimate by 37.8%. The bottom line soared 59.4% year over year.Net revenues were $502.4 million, which inched up 1.2% year over year. The top line beat the consensus mark by 3.4%.Pediatrix Medical Group, Inc. Price, Consensus and EPS Surprise Pediatrix Medical Group, Inc. price-consensus-eps-surprise-chart | Pediatrix Medical Group, Inc. QuoteQ4 Update for MDSame-unit revenues improved 8.7% year over year, beating the Zacks Consensus Estimate and our estimate of 4.3%. Same-unit revenues, attributable to patient volume, grew 2.8% year over year. Same-unit revenues from net reimbursement-related factors advanced 5.9% year over year on the back of decent growth in hospital contract administrative fees and improved payor mix. It beat the Zacks Consensus Estimate and our estimate of 2.7%.Pediatrix Medical’s total operating expenses declined 23.8% year over year to $463.1 million, higher than our estimate of $447.9 million. The decrease was attributable to lower practice salaries and benefits, and practice supplies and other operating expenses. Practice salaries and benefits fell 4% on a year-over-year basis on the back of the impact of practice dispositions. Interest expenses of $9.7 million slid 3.7% year over year but were higher than our estimate of $9.6 million.MD’s net income totaled $30.5 million against the prior-year quarter’s loss of $124.3 million. Adjusted EBITDA climbed 35.2% year over year to $68.7 million, which beat our estimate of $53.8 million.MD’s Financial Update (as of Dec. 31, 2024)Pediatrix Medical exited the fourth quarter with cash and cash equivalents of $229.9 million, which increased more than three-fold from the 2023-end figure. There were no outstanding borrowings on its revolving credit facility at the quarter-end.Total assets of $2.2 billion tumbled 3% from the level at 2023-end. Total debt, including finance leases, net, amounted to $617.7 million, down 2.5% from the figure as of Dec. 31, 2023. Total shareholders’ equity of $764.9 million decreased 9.9% from the 2023-end figure. Operating cash flow surged 50.4% from the 2023-end level to $206.6 million in 2024.Share Repurchase Update for MDPediatrix Medical bought back common shares for $1.7 million in 2024. It had a leftover capacity of $2.9 million under its $500 million repurchase program (approved in August 2018) as of Dec. 31, 2024.MD’s 2025 View UnveiledManagement projects adjusted EBITDA to be between $215 million and $235 million, the midpoint of which indicates a 0.4% increase from the 2024 reported figure of $224.1 million. Net income is estimated to be between $98.3 million and $112.9 million. A loss of $99.1 million was incurred in 2024.Interest expense is forecasted at $37.9 million for 2025, which implies a 7.1% decline from the 2024 figure of $40.7 million. Income tax expense is expected to be in the range of $36.4-$41.8 million.Depreciation and amortization expenses are estimated to be $27.5 million. Transformational and restructuring-related expenses are expected at $14.9 million.MD’s Zacks RankPediatrix Medical currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other Medical Sector ReleasesOf the Medical sector players that have reported fourth-quarter 2024 results so far, the bottom-line results of Centene Corporation CNC, Tenet Healthcare Corporation THC and Encompass Health Corporation EHC beat the respective Zacks Consensus Estimate.Centene reported fourth-quarter 2024 adjusted EPS of 80 cents, which outpaced the Zacks Consensus Estimate by 63.3%. Moreover, the bottom line rose 77.8% year over year. Revenues were $40.8 billion, which increased 3.4% year over year. The top line surpassed the consensus mark by 4.8%. Revenues from Medicaid dipped 1% year over year to $20.8 billion, while Medicare revenues grew 4% year over year to $5.5 billion. Additionally, commercial revenues of $8.7 billion climbed 18% year over year.Centene's premiums amounted to $35.5 billion, rising 3.8% year over year. Service revenues decreased 29.7% year over year to $777 million. Investment and other income of $344 million dipped 14.2% year over year. As of Dec. 31, 2024, total membership was 28.6 million, which grew 4.1% year over year. Centene’s HBR deteriorated 10 basis points year over year to 89.6%. Adjusted net earnings of $404 million rose 68.3% year over year. Tenet Healthcare’s fourth-quarter 2024 adjusted EPS of $3.44 surpassed the Zacks Consensus Estimate by 17.4%. The bottom line increased 28.4% year over year. Net operating revenues declined 5.7% year over year to $5.1 billion. The top line missed the consensus mark by 1.8%. Adjusted net income was $330 million, which increased 16.6% year over year. Adjusted EBITDA increased 3.6% year over year to $1.05 billion. Adjusted EBITDA margin of 20.7% improved 190 basis points year over year.The Hospital Operations and Services segment recorded net operating revenues of $3.81 billion, which fell 11.4% year over year. On a same-hospital basis, net patient service revenues improved 0.6% year over year. Adjusted EBITDA declined 5.5% year over year to $518 million. The Ambulatory Care unit’s net operating revenues climbed 16.9% year over year to $1.3 billion. Adjusted EBITDA of $530 million rose 14.2% year over year. Encompass Health reported fourth-quarter adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 14.7%. The bottom line increased 23.2% year over year. Net operating revenues of $1.4 billion improved 12.8% year over year. The top line beat the consensus mark by 2.1%. EHC’s net patient revenue per discharge rose 4.2% year over year. Total discharges grew 7.8% year over year to 63,839. Net and comprehensive income climbed 37.9% year over year to $164.2 million in the fourth quarter.  Adjusted EBITDA of $289.6 million grew 13.6% year over year and surpassed our estimate of $261 million.   In the fourth quarter, Encompass Health added 22 beds to its existing hospitals and inaugurated one de novo hospital. The unit’s operating gain of $0.6 billion remained stable year over year. Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 Tenet Healthcare Corporation (THC): Free Stock Analysis Report Pediatrix Medical Group, Inc. (MD): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report Encompass Health Corporation (EHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks