Healthcare services group Ensign's Q3 adjusted profit beats estimates on record occupancy rates, raises FY guidance

Ensign group

03/11/2025 21:16

Overview

Ensign Q3 adjusted revenue grows 19.8%, beating analyst expectations

Adjusted EPS for Q3 rises 18% yr/yr, exceeding analyst estimates

Company raises 2025 earnings guidance to $6.48-$6.54 per share

Outlook

Ensign raises 2025 earnings guidance to $6.48-$6.54 per share

Company increases 2025 revenue guidance to $5.05 bln-$5.07 bln

Ensign cites strong demographic trends as a tailwind for growth

Result Drivers

OCCUPANCY GROWTH - Ensign reports record occupancy rates in same and transitioning facilities, attributed to strong clinical outcomes and market share gains

REVENUE INCREASE - Skilled services revenue increased by 19.9%, driven by higher occupancy and skilled mix in same and transitioning facilities

ACQUISITION STRATEGY - Ensign's acquisition of 22 new operations, including 10 real estate assets, contributed to revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Rental Revenue
$6.62 mln
Q3 Adjusted Revenue
Beat
$1.30 bln
$1.27 bln (5 Analysts)
Q3 Adjusted EPS
Beat
$1.64
$1.57 (5 Analysts)
Q3 EPS
$1.42
Q3 Net Income
$83.91 mln
Q3 Operating Income
$96.21 mln
Q3 Service Revenue
$1.28 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 Ensign Group Inc is $185.00, about 2.6% above its October 31 closing price of $180.10

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nGNX3nw7JR

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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.)