NASDAQ$ENSG

The Ensign Group Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Ensign Group reported record Q3 2020 operating results, increased 2020 annual earnings guidance, and announced 2021 guidance.

The Ensign Group announced record operating results for the third quarter of 2020, with GAAP diluted earnings per share of $0.77 and adjusted earnings per share of $0.78. Consolidated GAAP revenues for the quarter were $599.3 million. The company increased its 2020 annual earnings guidance to $3.04 to $3.12 per diluted share and provided 2021 annual earnings per share guidance of $3.44 to $3.56 per diluted share.

  • GAAP diluted earnings per share increased by 97.4% over the prior year quarter.
  • Adjusted diluted earnings per share increased by 95.0% over the prior year quarter.
  • Consolidated GAAP revenues increased by 17.0% over the prior year quarter.
  • GAAP net income increased by 94.4% over the prior year quarter.

Headline financials

Total Revenue

$599M

Previous: $601M-0.2%
EPS (adj)

$0.78

Previous: $0.55+41.8%
Capital Expenditures

-$10.7M

Previous: -$55M+80.5%
Free Cash Flow

$32.3M

Previous: -$27.8M+216.2%
Net Income

$43.1M

Previous: $27.2M+58.5%
Operating Income

$55.1M

Previous: $38.9M+41.4%
Gross Profit

$134M

Previous: $123M+9.3%
Cash & Equivalents

$175M

Previous: $44.4M+295.0%
Total Assets

$2.46B

Previous: $2.36B+4.5%
Stock-Based Comp

$4.17M

Previous: $2.98M+40.1%

Revenue & EPS history

Ensign Group · Revenue · Quarterly

$599M

Q3 2020-0.2%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Ensign Group · $924M total across 2 segments · Q3 2023

  • Skilled Services
    $903M+22.1%
  • Standard Bearer
    $21M+12.3%

Forward guidance

The company is increasing its 2020 annual earnings guidance to $3.04 to $3.12 per diluted share and maintaining annual revenue guidance of $2.42 billion to $2.45 billion. Management also provided guidance for 2021, with annual earnings per share guidance of $3.44 to $3.56 per diluted share and annual revenue guidance of $2.62 billion to $2.69 billion.

Tailwinds

  • Enormous upside in newly acquired operations.
  • Great acquisitions on the horizon.
  • Operations are primed to rebuild occupancies.
  • Operations are primed to gain additional market share.
  • Deepened relationships with acute care providers and other healthcare partners.

Headwinds

  • Significant impact from the pandemic on the fourth quarter and beyond.
  • Continued COVID-19-related expenses in the fourth quarter and into 2021.
  • Higher labor costs.
  • Ongoing acquisition of unprecedented levels of PPE.
  • Costs related to more and more testing.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.7%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+4.9%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+21.1%

Q2 2020

Best reaction

-14.9%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-5.8%-10.2%
Q4 2025+13.8%+17.8%+19.7%
Q3 2025-0.1%-2.1%-3.2%
Q2 2025+0.1%+1.8%+1.2%
Q1 2025+0.7%+2.9%+14.9%
Q4 2024-8.7%-13.3%-12.4%
Q3 2024+1.9%+4.6%-2.4%
Q2 2024+4.5%+6.5%+8.4%
Q1 2024-1.5%-2.0%+2.4%
Q4 2023+6.7%+3.9%+7.7%
Q3 2023-1.4%-1.4%+13.3%
Q2 2023+1.4%+3.2%+7.0%
Q1 2023-5.7%-4.6%-13.1%
Q4 2022-1.7%-4.4%-2.7%
Q3 2022-1.9%+1.8%+6.7%
Q2 2022+9.5%+6.5%+7.0%
Q1 2022-1.4%-3.8%+1.1%
Q4 2021+7.9%+6.0%+15.9%
Q3 2021+8.3%+11.3%+10.6%
Q2 2021-2.5%-1.3%-3.8%
Q1 2021-3.3%-2.5%-6.3%
Q4 2020+0.4%-2.1%-6.3%
Q3 2020+2.8%+4.8%+23.2%
Q2 2020+21.1%+21.5%+20.9%
Q1 2020+2.6%+2.6%+22.6%
Q4 2019+11.6%+13.9%-2.5%
Q3 2019+1.1%+1.9%+3.9%
Q2 2019-10.3%-15.7%-17.2%
Q1 2019-1.0%+5.0%+4.2%
Q4 2018+11.3%+10.0%+10.2%
Q3 2018+11.2%+20.5%+21.1%
Q2 2018-2.7%-0.1%+8.4%
Q1 2018+12.4%+17.8%+30.7%
Q4 2017+7.5%+8.7%+20.1%
Q3 2017-0.8%-0.2%-2.9%
Q2 2017-7.4%-7.3%-4.4%
Q1 2017+10.4%+9.5%+2.4%
Q4 2016-14.9%-15.5%-8.9%
Q3 2016+3.4%+5.3%+20.7%
Q2 2016-12.2%-8.9%-12.6%
Q1 2016+1.1%
Q4 2015-5.6%
Q3 2015+13.0%
Q2 2015-0.8%
Q1 2015+5.7%
Q4 2014-6.0%
Q3 2014+5.3%
Q2 2014-1.9%
Q1 2014-2.0%
Q4 2013-1.0%
Q3 2013+3.5%
Q2 2013-3.9%
Q1 2013-5.3%
Q4 2012+3.1%
Q3 2012-5.1%
Q2 2012+2.6%
Q1 2011-0.7%
Q1 2012-0.7%
Q4 2011+7.7%
Q4 2009+7.7%
Q3 2011+12.7%
Q3 2010+12.7%
Q4 2010+1.2%
Q2 2010+1.2%
Q2 2011+1.2%
Q1 2010-3.4%

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