Pediatrix Medical Group, Inc. MD reported first-quarter 2026 adjusted earnings per share (EPS) of 44 cents, which beat the Zacks Consensus Estimate by 18.9%. The bottom line increased 33.3% year over year.
Net revenues increased 3.9% year over year to $476.2 million. The top line exceeded the Zacks Consensus Estimate by 2%.
The strong performance was driven by improved reimbursements, along with contributions from recent acquisitions and better same-unit performance. However, these gains were partly offset by lower patient volumes and slightly higher operating costs.
Pediatrix Medical Group, Inc. Price, Consensus and EPS Surprise
Pediatrix Medical Group, Inc. price-consensus-eps-surprise-chart | Pediatrix Medical Group, Inc. Quote
MD’s Q1 Update
Same-unit revenues increased 2.8% year over year, beating the Zacks Consensus Estimate. Same-unit revenues from patient service volumes declined 1.6% year over year.
Same-unit revenues from net reimbursement-related factors grew 4.4% year over year. This growth was supported by improved cash collections, higher administrative fees from hospital contracts, more patient cases and a slightly better payor mix. This metric exceeded both the Zacks Consensus Estimate and our model estimate of 1%.
Total operating expenses were $434.5 million, up 1.9% year over year. The figure was higher than our estimate of $426.1 million. The year-over-year increase was primarily due to higher depreciation and amortization and general and administrative expenses.
Practice salaries and benefits totaled $345.7 million, up 2.6% year over year, mainly due to higher same-unit clinical salary expenses. Interest expense decreased 9.7% year over year to $8.3 million. The figure was below our estimate of $8.9 million due to lower interest rates and borrowings.
Adjusted EBITDA rose 18.3% year over year to $58.2 million, driven by favorable same-unit performance and contributions from recent acquisitions.
MD’s Financial Update (as of March 31, 2026)
Pediatrix Medical exited the first quarter of 2026 with cash and cash equivalents of $205.8 million, down from $375.2 million as of Dec. 31, 2025. There were no outstanding borrowings on its revolving credit facility at the end of the quarter.
Total assets of $2.1 billion decreased from $2.2 billion at the end of 2025.
Total debt, including finance leases, net was $590.8 million, which fell from $597.3 million at the end of 2025.
Total shareholders’ equity of $878.6 million improved from $865.9 million at the end of 2025.
Operating cash outflow was $129.8 million compared with $117.5 million in the year-ago quarter.
MD’s Share Repurchase Update
During the first quarter of 2026, the company repurchased 1 million shares for $19.9 million. As of March 31, 2026, $146.3 million was available under the buyback program.
MD’s 2026 View
Management has reaffirmed its guidance for adjusted EBITDA at $280-$300 million for 2026.
Net income is estimated to be between $152.1 million and $166.7 million for 2026. Interest expenses are currently forecasted to be $33.5 million. Income tax expenses are expected to be in the range of $56.3-$61.7 million.
Depreciation and amortization expenses are now estimated to be $24.8 million. Transformational and restructuring-related expenses are anticipated to be $13.3 million.
Pediatrix Medical currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Other Healthcare Stocks Perform?
Here are some stocks in the broader Medical space that have also reported earnings for the December quarter: The Ensign Group, Inc. ENSG, HCA Healthcare, Inc. HCA and Elevance Health, Inc. ELV.
The Ensign Group reported first-quarter 2026 adjusted EPS of $1.85, which beat the Zacks Consensus Estimate by 3.4%. Earnings rose 21.7% year over year, driven by higher occupancy, increased patient days, and contributions from acquired and transitioning facilities, partly offset by higher expenses. ENSG’s operating revenues advanced 18.4% year over year to $1.4 billion. The top line marginally missed the consensus mark by 0.07%.
HCA Healthcare reported first-quarter 2026 adjusted earnings per share of $7.15, slightly below the Zacks Consensus Estimate of $7.17. The figure was up 10.9% year over year. Revenues increased 4.3% to $19.1 billion but narrowly missed the consensus estimate by 0.1%. HCA’s performance was affected by declines in same-facility inpatient and outpatient surgeries, along with elevated operating expenses, partially offset by modest growth in emergency room visits.
Elevance Health reported first-quarter 2026 adjusted earnings per share of $12.58, which beat the Zacks Consensus Estimate by 17.8% on the back of strong premium growth. The bottom line increased 5.1% year over year. ELV’s operating revenues rose 1.5% to $49.5 billion and exceeded the consensus estimate by 3.7%. Segment-wise, the Carelon division delivered robust revenue growth, supported by the scaling of risk-based services, while the Health Benefits segment benefited from higher premium yields.
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Pediatrix Medical Group, Inc. (MD): Free Stock Analysis Report
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