Latest news with #PediatrixMedicalGroup
Yahoo
5 days ago
- Business
- Yahoo
3 Reasons to Avoid MD and 1 Stock to Buy Instead
Pediatrix Medical Group has followed the market's trajectory closely. The stock is down 5.2% to $14.23 per share over the past six months while the S&P 500 has lost 2.2%. This may have investors wondering how to approach the situation. Is now the time to buy Pediatrix Medical Group, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it's free. Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why MD doesn't excite us and a stock we'd rather own. In addition to reported revenue, same-store sales are a useful data point for analyzing Specialized Medical & Nursing Services companies. This metric measures the change in sales at brick-and-mortar locations that have existed for at least a year, giving visibility into Pediatrix Medical Group's underlying demand characteristics. Over the last two years, Pediatrix Medical Group's same-store sales averaged 3.9% year-on-year growth. This performance slightly lagged the sector and suggests it might have to change its strategy or pricing, which can disrupt operations. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Sadly for Pediatrix Medical Group, its EPS declined by 1.8% annually over the last five years while its revenue grew by 2%. This tells us the company became less profitable on a per-share basis as it expanded. A company's ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Unfortunately, Pediatrix Medical Group's ROIC has decreased significantly over the last few years. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. Pediatrix Medical Group doesn't pass our quality test. After the recent drawdown, the stock trades at 9.2× forward P/E (or $14.23 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better stocks to buy right now. Let us point you toward one of Charlie Munger's all-time favorite businesses. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
14-05-2025
- Business
- Yahoo
The Return Trends At Pediatrix Medical Group (NYSE:MD) Look Promising
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So when we looked at Pediatrix Medical Group (NYSE:MD) and its trend of ROCE, we really liked what we saw. Our free stock report includes 1 warning sign investors should be aware of before investing in Pediatrix Medical Group. Read for free now. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Pediatrix Medical Group: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = US$198m ÷ (US$2.0b - US$271m) (Based on the trailing twelve months to March 2025). Thus, Pediatrix Medical Group has an ROCE of 11%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Healthcare industry average of 10%. Check out our latest analysis for Pediatrix Medical Group Above you can see how the current ROCE for Pediatrix Medical Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Pediatrix Medical Group . Pediatrix Medical Group has not disappointed in regards to ROCE growth. The data shows that returns on capital have increased by 123% over the trailing five years. That's a very favorable trend because this means that the company is earning more per dollar of capital that's being employed. Speaking of capital employed, the company is actually utilizing 57% less than it was five years ago, which can be indicative of a business that's improving its efficiency. Pediatrix Medical Group may be selling some assets so it's worth investigating if the business has plans for future investments to increase returns further still. In a nutshell, we're pleased to see that Pediatrix Medical Group has been able to generate higher returns from less capital. And given the stock has remained rather flat over the last five years, there might be an opportunity here if other metrics are strong. With that in mind, we believe the promising trends warrant this stock for further investigation. Pediatrix Medical Group does have some risks though, and we've spotted 1 warning sign for Pediatrix Medical Group that you might be interested in. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
AMN Healthcare Services (AMN) Q1 Earnings: What To Expect
Healthcare staffing company AMN Healthcare Services (NYSE:AMN) will be reporting earnings tomorrow after market hours. Here's what you need to know. AMN Healthcare Services beat analysts' revenue expectations by 5.8% last quarter, reporting revenues of $734.7 million, down 10.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts' EPS estimates. Is AMN Healthcare Services a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting AMN Healthcare Services's revenue to decline 18.4% year on year to $670.1 million, improving from the 27.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share. AMN Healthcare Services Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AMN Healthcare Services has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1.5% on average. Looking at AMN Healthcare Services's peers in the healthcare providers & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Pediatrix Medical Group's revenues decreased 7.4% year on year, beating analysts' expectations by 1.6%, and The Ensign Group reported revenues up 16.1%, in line with consensus estimates. The Ensign Group's stock price was unchanged following the results. Read our full analysis of Pediatrix Medical Group's results here and The Ensign Group's results here. There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 5.9% on average over the last month. AMN Healthcare Services is up 2.3% during the same time and is heading into earnings with an average analyst price target of $28.57 (compared to the current share price of $19.91). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
06-05-2025
- Business
- Yahoo
Pediatrix Medical Group (NYSE:MD) Posts Better-Than-Expected Sales In Q1 But Stock Drops
We can dig further into the company's revenue dynamics by analyzing its same-store sales, which show how much revenue its established locations generate. Over the last two years, Pediatrix Medical Group's same-store sales averaged 3.5% year-on-year growth. Because this number is better than its revenue growth, we can see its sales from existing locations are performing better than its sales from new locations. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Pediatrix Medical Group's recent performance shows its demand has slowed as its revenue was flat over the last two years. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Pediatrix Medical Group grew its sales at a tepid 2% compounded annual growth rate. This was below our standards and is a tough starting point for our analysis. With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group (NYSE:MD) provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states. 'Our strong first quarter results reflect same-unit top-line outperformance versus our expectations, continued steady cost management and the successful results of the portfolio restructuring we completed last year. As a result of our strong first quarter performance, we are raising our full year 2025 Adjusted EBITDA outlook from a range of $215 million to $235 million to a range of $220 million to $240 million, demonstrating our commitment to delivering value for our stakeholders,' said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group. EBITDA guidance for the full year is $230 million at the midpoint, above analyst estimates of $226.9 million Is now the time to buy Pediatrix Medical Group? Find out in our full research report . Pediatric healthcare provider Pediatrix Medical Group (NYSE:MD) reported Q1 CY2025 results topping the market's revenue expectations , but sales fell by 7.4% year on year to $458.4 million. Its non-GAAP profit of $0.33 per share was 36.7% above analysts' consensus estimates. Story Continues Pediatrix Medical Group Same-Store Sales Growth This quarter, Pediatrix Medical Group's revenue fell by 7.4% year on year to $458.4 million but beat Wall Street's estimates by 1.6%. Looking ahead, sell-side analysts expect revenue to decline by 5% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Pediatrix Medical Group was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.5% was weak for a healthcare business. Analyzing the trend in its profitability, Pediatrix Medical Group's operating margin decreased by 9.2 percentage points over the last five years. This performance was caused by more recent speed bumps as the company's margin fell by 10.9 percentage points on a two-year basis. We're disappointed in these results because it shows its expenses were rising and it couldn't pass those costs onto its customers. Pediatrix Medical Group Trailing 12-Month Operating Margin (GAAP) In Q1, Pediatrix Medical Group generated an operating profit margin of 7%, up 3.8 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sadly for Pediatrix Medical Group, its EPS declined by 1.9% annually over the last five years while its revenue grew by 2%. This tells us the company became less profitable on a per-share basis as it expanded. Pediatrix Medical Group Trailing 12-Month EPS (Non-GAAP) We can take a deeper look into Pediatrix Medical Group's earnings to better understand the drivers of its performance. As we mentioned earlier, Pediatrix Medical Group's operating margin improved this quarter but declined by 9.2 percentage points over the last five years. Its share count also grew by 3.2%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Pediatrix Medical Group Diluted Shares Outstanding In Q1, Pediatrix Medical Group reported EPS at $0.33, up from $0.20 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Pediatrix Medical Group's full-year EPS of $1.62 to shrink by 4%. Key Takeaways from Pediatrix Medical Group's Q1 Results We were impressed by how Pediatrix Medical Group blew past analysts' same-store sales, revenue, EPS, and EBITDA expectations this quarter. We were also excited it lifted its full-year EBITDA guidance, topping Wall Street's estimates. Zooming out, we think this was a solid print, but shares traded down 6.3% to $12.11 immediately following the results. Is Pediatrix Medical Group an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Washington Post
06-05-2025
- Business
- Washington Post
Pediatrix Medical Group: Q1 Earnings Snapshot
SUNRISE, Fla. — SUNRISE, Fla. — Pediatrix Medical Group, Inc. (MD) on Tuesday reported first-quarter earnings of $20.7 million. The Sunrise, Florida-based company said it had profit of 24 cents per share. Earnings, adjusted for one-time gains and costs, were 33 cents per share.
