Shares of Pediatrix Medical Group (MD) surged over 10% in pre-market trading on Thursday, following the release of the company's impressive fourth-quarter 2024 results and upbeat guidance for 2025.

For the quarter ended December 31, 2024, the leading provider of physician services reported adjusted earnings per share of $0.51, significantly higher than the consensus estimate of $0.37. Net revenue also exceeded expectations, rising to $502.4 million compared to analysts' projections of $486.2 million, driven by an 8.7% increase in same-unit revenue.

Notably, Pediatrix anticipates its 2025 Adjusted EBITDA to range between $215 million and $235 million, reflecting continued momentum and the benefits of its recent portfolio restructuring and cost-cutting initiatives. The company cited overhead expense reductions and the completion of its practice portfolio optimization as key factors contributing to the robust outlook.

"Our strong fourth quarter results reflect continued top-line outperformance versus our expectations, the completion of our portfolio restructuring, and the related overhead expense reductions," said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group. "We believe this focus, supported by our financial strength, will benefit all of our stakeholders."