The Top 5 Analyst Questions From The Ensign Group’s Q3 Earnings Call

• Revenue: $1.30 cardinal vs expert estimates of $1.28 cardinal (19.8% year-on-year growth, 1.3% beat)

• EPS (GAAP): $1.42 vs expert expectations of $1.49 (4.9% miss)

• Adjusted EBITDA: $151.1 cardinal vs expert estimates of $147.1 cardinal (11.7% margin, 2.7% beat)

• The institution lifted its gross guidance for the afloat year to $5.06 cardinal astatine the midpoint from $5.01 billion, a 1.1% increase

• EPS (GAAP) guidance for the afloat year is $6.51 astatine the midpoint, beating expert estimates by 12.1%

• Operating Margin: 7.4%, successful enactment with the aforesaid 4th past year

• Sales Volumes roseate 15.1% twelvemonth connected twelvemonth (9.9% successful the aforesaid 4th past year)

• Market Capitalization: $10.35 billion

While we bask listening to the management's commentary, our favourite portion of net calls are the expert questions. Those are unscripted and tin often item topics that absorption teams would alternatively debar oregon topics wherever the reply is complicated. Here is what has caught our attention.

• Benjamin Hendrix (RBC Capital Markets) asked astir further imaginable for skilled premix maturation successful mature facilities. CEO Barry Port and COO Spencer Burton explained determination is important headroom, particularly arsenic lone 31.7% of same-store days are presently skilled, and that integrated maturation remains a large focus.

• Hendrix (RBC Capital Markets) besides inquired astir managed attraction contracting successful caller markets specified arsenic Alabama. CFO Suzanne Snapper described it arsenic a gradual process, requiring clip to found relationships and objective readiness, but emphasized that semipermanent partnerships thrust eventual gains.

• Albert Rice (UBS) questioned whether existent woody enactment was influenced by marketplace conditions. Chief Investment Officer Chad Keetch clarified that acquisition timing was mostly owed to seller readiness, and that subject successful pricing remains a precedence contempt immoderate regions seeing elevated competition.

• Rice (UBS) sought updates connected behavioral wellness work expansion. CEO Barry Port confirmed increasing traction, with caller behaviour units being added successful Arizona and California to code accrued request from managed attraction partners.

• Raj Kumar (Stephens) asked astir marketplace stock gains and integrated maturation prospects. Port highlighted that, portion demographic request is the main driver, Ensign’s facilities are progressively positioned arsenic high-quality, lower-cost alternatives, enabling gradual stock gains implicit time.