Ensign Group, Inc. (ENSG), a leading provider of healthcare services, reported its third-quarter earnings after the market closed on Thursday, revealing results that fell short of analysts’ expectations. The company reported adjusted earnings per share (EPS) of $1.34, missing the consensus estimate of $1.38. However, Ensign Group exceeded revenue expectations, generating $1.081 billion in sales, compared to the anticipated $1.068 billion.
Despite the earnings miss, Ensign Group remains optimistic about its future. The company’s CEO, Barry Port, highlighted the strong performance of its recently acquired operations, stating, “Our local leaders continue to consistently drive outstanding clinical and financial performance and we are happy to report another record quarter. We are particularly impressed with these results when we’ve added 53 new operations across several markets in our recently acquired bucket.”
Looking ahead, Ensign Group has narrowed its FY24 earnings guidance. The company now expects adjusted EPS to be in the range of $5.46 to $5.52 per share, compared to analysts’ previous estimate of $5.46. Ensign Group also forecasts FY24 revenue to be between $4.25 billion and $4.26 billion, slightly higher than the consensus estimate of $4.22 billion.
Following the earnings announcement, several analysts adjusted their price targets on Ensign Group. Truist Securities analyst David Macdonald maintained a Hold rating on the stock but raised the price target from $160 to $170. Stephens & Co. analyst Scott Fidel also maintained an Overweight rating on ENSG and increased the price target from $163 to $167.
These price target adjustments suggest that analysts remain optimistic about Ensign Group’s long-term prospects despite the recent earnings miss. The company’s strong revenue performance and continued growth through acquisitions are likely contributing factors to this positive outlook. Investors looking to make a decision on ENSG stock should consider the company’s recent performance, future guidance, and the opinions of leading analysts in the sector.
