The Ensign Group Earnings: Here’s Why Investors are Ambivalent Now

The Ensign Group, Inc. (NASDAQ:ENSG) delivered a profit and missed Wall Street’s expectations, AND 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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The Ensign Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.56% to $0.65 in the quarter versus EPS of $0.61 in the year-earlier quarter.

Revenue: Rose 7.93% to $218.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Ensign Group, Inc. reported adjusted EPS income of $0.65 per share. By that measure, the company missed the mean analyst estimate of $0.68. It missed the average revenue estimate of $224.16 million.

Quoting Management: “We are pleased to report that operating results improved, albeit modestly relative to our typical performance, while we actively prepared for and began to absorb a number of new operations in the first quarter,” said Ensign’s President and Chief Executive Officer Christopher Christensen. “With this quarter, we believe that we have laid a solid foundation to ramp our growth in every key operating and quality metric through 2013,” he added.

Key Stats (on next page)…

Revenue increased 3.36% from $211.1 million in the previous quarter. EPS increased 6.56% from $0.61 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.67 to a profit $0.7. For the current year, the average estimate has moved up from a profit of $2.7 to a profit of $2.77 over the last ninety days.

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

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