MEDNAX (MD) Misses Q2 EPS by 19c, Miss on Revenues; Q3 EPS Guidance Below Consensus

MEDNAX (NYSE: MD) reported Q2 EPS of $0.69, $0.19 worse than the analyst estimate of $0.88. Revenue for the quarter came in at $843 million versus the consensus estimate of $848.82 million.

For the 2017 second quarter, MEDNAX reported the following results:

• Net revenue of $843 million;
• Net income of $64 million; and
• EBITDA of $148 million.

2017 Third Quarter Outlook

For the 2017 third quarter, MEDNAX expects earnings per share will be in a range of $0.66 to $0.71 per diluted share and Adjusted EPS will be in a range of $0.83 to $0.88. The Adjusted EPS range excludes approximately $0.11 per diluted share of estimated amortization expense and $0.06 per diluted share of estimated stock-based compensation expense.

Additionally, for the 2017 third quarter, MEDNAX expects that EBITDA will decline by 17 percent to 21 percent, compared to the prior-year period. As compared to the 12.2 percent decline in EBITDA in the second quarter of 2017, this expectation incorporates the impact of the anniversary of contributions from certain acquisitions completed during the third quarter of 2016.

This outlook assumes that total same-unit revenue growth for the three months ended September 30, 2017 will be in a range of flat to negative two percent, compared to the prior-year period.

This outlook also assumes an effective tax rate for the third quarter of 2017 of approximately 39 percent. Our effective income tax rate of 31.4 percent for the third quarter of 2016 included the favorable impact from the settlement of a tax matter. Excluding this favorable settlement, the effective income tax rate was 39 percent

GUIDANCE:

MEDNAX sees Q3 2017 EPS of $0.83-$0.88, versus the consensus of $0.98.

For earnings history and earnings-related data on MEDNAX (MD) click here.

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