Core Viewpoint - EY is facing allegations of misleading the UK's Financial Reporting Council (FRC) during its audit of NMC Health, which has led to a £2bn ($2.7bn) negligence trial against the firm [1][2]. Group 1: Allegations and Legal Proceedings - The administrators from Alvarez & Marsal claim that EY overlooked critical warning signs and failed to detect substantial undisclosed borrowing by NMC's principal shareholders during audits from 2012 to 2018 [2]. - The trial, which began in May 2025, focuses on claims that EY misrepresented its access to essential documents to the FRC [2]. - EY partners allegedly misled the regulator into believing they had full access to NMC's risky transactions, while in reality, they could only view documents on a device controlled by NMC personnel [3]. Group 2: Communication and Access Issues - The court heard that NMC staff provided various reasons for not supplying a complete download of journal entries to EY auditors [4]. - An email from one of EY's lead auditors in 2018 expressed skepticism about NMC's claimed technical barriers, indicating potential issues in communication [4]. - The administrators assert that EY did not gain full access to NMC's general ledger and failed to manage communications with NMC's banks effectively [5]. Group 3: Financial Aspects - EY received £14m ($18m) for its audit services but has denied any negligence in its work on NMC's accounts [5].

Core Viewpoint - The Ensign Group, Inc. (ENSG) experienced an 8.9% increase in shares on July 25, driven by strong revenue growth in its Skilled Services segment, improved occupancy rates, and solid rental revenue growth, despite elevated expenses impacting overall profitability [1] Financial Performance - ENSG reported second-quarter 2025 adjusted EPS of $1.59, exceeding the Zacks Consensus Estimate by 3.3% and reflecting a 20.5% year-over-year improvement [2][8] - Operating revenues rose 18.5% year over year to $1.2 billion, surpassing the consensus mark by 1.8% [2][8] - Adjusted net income for the quarter was $93.3 million, a 22.1% increase year over year [3] Segment Performance - Skilled Services segment revenues reached $1.17 billion, growing 18.4% year over year, slightly above estimates [4] - Rental revenues increased by 34.7% year over year to $31.5 million, supported by buyouts [5] Expense and Cash Flow Analysis - Total expenses rose 18.3% year over year to $1.12 billion, exceeding estimates [3] - Cash and cash equivalents at the end of Q2 were $364 million, down 21.7% from the end of 2024 [6] - Net cash from operations for the first half of 2025 was $228 million, more than doubling year over year [7] Capital Deployment - The company repurchased shares worth $20 million and paid dividends totaling $7.2 million in the first half of 2025 [9] 2025 Outlook - Revenue guidance for 2025 has been raised to between $4.99 billion and $5.02 billion, indicating a 17.5% improvement from 2024 [10] - Adjusted EPS is now projected to be between $6.34 and $6.46 for 2025, reflecting a 16.4% growth from the previous year [10]