MEDNAX Earnings: Here’s Why Investors are Ambivalent Now

MEDNAX, Inc. (NYSE:MD) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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MEDNAX, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.24% to $1.1 in the quarter versus EPS of $0.98 in the year-earlier quarter.

Revenue: Rose 18.95% to $502.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: MEDNAX, Inc. reported adjusted EPS income of $1.1 per share. By that measure, the company beat the mean analyst estimate of $1.09. It missed the average revenue estimate of $504.17 million.

Quoting Management: “Our strong operating results reflect the expansion of our national group practice through a proven strategy that adds value not only to physicians that practice as part of our national group, but also to patients, referring physicians, hospital partners and third-party payors,” said Roger J. Medel, M.D., Chief Executive Officer of MEDNAX. “We continue to demonstrate our ability to strategically grow by acquiring well-established and well-recognized groups and integrating them in a way that advances our commitment to patient care, while achieving efficiencies through the delivery of administrative services to support our physicians and advanced practitioners. At the same time, we are managing a full and robust acquisition pipeline, and are confident in our ability to continue growing through acquisitions across all of our physician specialties.”

Key Stats (on next page)…

Revenue increased 6.66% from $471.33 million in the previous quarter. EPS decreased 16.67% from $1.32 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.41 to a profit $1.39. For the current year, the average estimate has moved down from a profit of $5.51 to a profit of $5.47 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)