Ensign Group Q1 profit beats on higher occupancy rates

Overview

• US post-acute care operator's Q1 revenue rose 18% yr/yr to $1.39 bln

• Adjusted EPS for Q1 rose 22% yr/yr, beating analyst expectations

• Company raised 2026 earnings and revenue guidance after strong Q1 and recent acquisitions

Outlook

• Ensign raises 2026 diluted EPS guidance to $7.48-$7.62 from $7.41-$7.61

• Company lifts 2026 revenue outlook to $5.81 bln-$5.86 bln from $5.77 bln-$5.84 bln

• Ensign expects additional acquisitions in Q2 and Q3 2026 to support growth

Result Drivers

• OCCUPANCY AND SKILLED MIX - Record occupancy rates and higher skilled patient volumes in Same and Transitioning Facilities drove revenue and earnings growth

• ACQUISITIONS - Recent acquisitions, including 22 new operations, expanded the facility base and contributed to revenue growth

• HIGHER MEDICARE AND MANAGED CARE VOLUMES - Increased Medicare and managed care census and revenue supported growth

Company press release: ID:nGNX4pQgKb

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 $222.00, about 19.1% above its April 29 closing price of $186.40

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

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