Shares of Mednax (MD 1.14%) were soaring 16.3% higher at 11:56 a.m. EDT on Friday. The big gain came after the company announced its first-quarter results before the market opened.
Mednax reported net revenue in the first quarter of $446.8 million. This result was well above the consensus Wall Street estimate of $424.1 million. The company announced adjusted earnings per share (EPS) from continuing operations of $0.24. This trounced the average analysts' estimate of $0.13.
COVID-19 continued to weigh on the medical services provider's performance in Q1. However, patient volumes weren't affected as much as in the fourth quarter of 2020.
Perhaps the biggest reason the healthcare stock is rising today is that investors are more confident about Mednax's prospects. Increased availability of COVID-19 vaccines could further reduce the negative impact of the pandemic on Mednax's business. The company also acquired two physician groups in the first quarter that will help boost its revenue.