ENSG Gains 3% on Q1 Earnings Beat, Higher Patient Days Aid

Core Viewpoint - The Ensign Group, Inc. (ENSG) reported strong first-quarter 2025 results, with increased occupancy rates and patient days contributing to revenue growth, although rising expenses partially offset the gains [1][2][3]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were $1.52, exceeding the Zacks Consensus Estimate by 1.3% and reflecting a year-over-year increase of 16.9% [2]. - Operating revenues reached $1.2 billion, marking a 16.1% year-over-year growth and beating the consensus estimate by 0.2% [2]. - Adjusted net income improved 18% year over year to $89 million, surpassing the estimate of $88.3 million [3]. Segment Performance - Skilled Services segment revenues grew 15.9% year over year to $1.12 billion, slightly missing the Zacks Consensus Estimate but exceeding internal estimates [4]. - Rental revenues from the Standard Bearer segment totaled $28.4 million, up 27.9% year over year, driven by buyouts [5]. Operational Metrics - Same-facilities occupancy improved by 230 basis points, while transitioning-facilities occupancy expanded by 400 basis points year over year [3]. - Total expenses increased by 15.5% year over year to $1.07 billion, higher than the estimate of $1.06 billion [3]. Cash and Debt Position - As of March 31, 2025, cash and cash equivalents were $282.7 million, down 39.2% from the end of 2024 [6]. - Long-term debt (less current maturities) was $140.6 million, a decrease of 0.7% from December 31, 2024 [7]. Capital Deployment - The company repurchased shares worth $10.8 million and paid dividends totaling $3.6 million in Q1 2025 [9]. 2025 Outlook - Revenue guidance for 2025 has been revised to a range of $4.89-$4.94 billion, indicating a 15.4% improvement from 2024 [10]. - Adjusted EPS is forecasted between $6.22 and $6.38 for 2025, reflecting a 14.5% growth from the previous year [10].