Pediatrix Medical Group (MD 0.56%) wasn't one of the healthier stocks on the U.S. market on Thursday. The healthcare services provider's shares fell by more than 12% over the course of the day, due mostly to the earnings report it published early that morning.
Double dips
In its fourth quarter, Pediatrix's revenue came in at nearly $493.8 million, down almost 2% year over year. Net income not in accordance with generally accepted accounting principles (GAAP) also dipped slightly, falling to $42.5 million ($0.50 per share) from the year-ago profit of $43.5 million.
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That meant a mixed quarter for the company, as analysts collectively modeled lower revenue ($486.2 million) but higher profitability. Their consensus for non-GAAP (adjusted) net income was $0.54 per share.
The company's bottom line was negatively affected by notably higher bonus payouts to its practitioners, which, in turn, stem from a tightening labor market for such professionals.
NYSE: MD
Key Data Points
Insubstantial gains?
In its earnings release, Pediatrix proffered very selected guidance, stating that it expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $280 million to $300 million for full-year 2026. The previous year's figure was $275.6 million.
That issue with costs is certainly a concern, though over the years, Pediatrix has managed to deliver growth and decent bottom-line profits in adverse circumstances. At the same time, given the tepid growth figures analysts anticipate for the coming year, I don't feel it's a compelling buy, even at the beaten-down price following earnings.
