Pediatrix Medical Group, Inc. Reports First-Quarter 2024 Earnings: Highlights and Analysis
Pediatrix Medical Group, Inc. (MD) recently reported its first-quarter 2024 earnings, exceeding expectations but showing a decline in year-over-year performance. The company’s adjusted earnings per share (EPS) of 20 cents surpassed the Zacks Consensus Estimate by 11.1%, despite a 13% decrease from the previous year.
While net revenues saw a slight increase of 0.8% year over year to $495.1 million, the top line fell just short of the consensus mark. The growth in same-unit revenues was a contributing factor, driven by higher patient volumes and improved hospital contract administrative fees. However, increased expenses, including rising practice salaries and benefits, as well as transformational and restructuring-related costs, partially offset the positive results.
Overall, same-unit revenues advanced 2.3% year over year, with patient volume contributing to a 1.3% growth. Net reimbursement-related factors also saw a 1% increase, driven by growth in hospital contract administrative fees.
Despite the revenue growth, total operating costs increased by 4% year over year, primarily due to higher practice salaries and benefits, practice supplies, and other operating expenses. Transformational and restructuring-related costs of $8.5 million were incurred in the first quarter, impacting the company’s bottom line.
Looking ahead, Pediatrix Medical Group, Inc. expects adjusted EBITDA between $200 million and $220 million for 2024, with a mid-point indicating a 4.8% improvement from the previous year. The company also plans to continue its share repurchase program, with a remaining capacity of $3.7 million under its $500 million repurchase program approved in August 2018.
Despite the challenges faced in the first quarter, Pediatrix Medical Group, Inc. remains optimistic about its financial outlook for the rest of the year. Management is focused on controlling expenses and driving growth to achieve its financial targets.