Ensign Group Q4 adjusted EPS beats expectations, revenue up 20.2%

Overview

• Post-acute healthcare provider's Q4 adjusted EPS beat analyst expectations

• Q4 revenue increased 20.2% yr/yr

• Company added 17 new operations during the quarter

Outlook

• Ensign projects 2026 earnings per share between $7.41 and $7.61

• Company forecasts 2026 revenue between $5.77 bln and $5.84 bln

• Ensign sees organic growth potential from current occupancy rates

Result Drivers

• OCCUPANCY INCREASE - Same Facilities and Transitioning Facilities occupancy rates rose to 83.8% and 84.9% respectively, reaching all-time highs

• MEDICARE REVENUE GROWTH - Medicare revenue for Same Facilities and Transitioning Facilities improved by 15.7% and 11.3% respectively over the prior year quarter

• NEW ACQUISITIONS - Company added 17 new operations, including 12 real estate assets, contributing to growth

Key Details

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 $206.00, about 18.7% above its February 3 closing price of $173.60

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nGNX2Ckh1R

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