MEDNAX Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

MEDNAX (NYS: MD) beat estimates by $0.03 last quarter, and investors are hoping it can beat them again. The company will unveil its latest earnings Tuesday. MEDNAX is a provider of physician services including newborn, maternal-fetal, pediatric subspecialty, and anesthesia care.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back MEDNAX, with 10 of 14 rating it a buy and the remainder rating it a hold. Analysts like MEDNAX better than competitor Tenet Healthcare overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared with three months ago.
  • Revenue forecasts: On average, analysts predict $394.6 million in revenue this quarter. That would represent a rise of 13% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $1.15 per share. Estimates range from $1.12 to $1.18.

What our community says:
CAPS All-Stars are solidly backing the stock with 98.7% granting it an "outperform" rating. The community at large concurs with the All-Stars with 97.7% assigning it a rating of "outperform." Fools have embraced MEDNAX, though the message boards have been quiet lately with only 50 posts in the past 30 days. MEDNAX has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
MEDNAX's profit has risen year over year by an average of 16.8%. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

32.3%

35.6%

35.7%

36.2%

Operating Margin

19.8%

23.3%

23.2%

23.5%

Net Margin

11.9%

14.6%

17.5%

14.1%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add MEDNAX now.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners