Physician services provider Pediatrix Medical Group, Inc. MD is set to report its fourth-quarter 2024 results on Feb. 20, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 37 cents per share and $485.68 million, respectively.

See the Zacks Earnings Calendar to stay ahead of market-making news.

The earnings estimate for the to-be-reported quarter has remained stable over the past 60 days. The bottom-line projection indicates a year-over-year increase of 15.6%. However, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decrease of 2.2%.

Image Source: Zacks Investment Research

For 2024, the Zacks Consensus Estimate for Pediatrix Medical’s revenues is pegged at $2 billion, implying a marginal rise of 0.1% year over year. The consensus mark for current year EPS is pegged at $1.35, implying a growth of 7.1% on a year-over-year basis.

Pediatrix Medical beat the consensus estimate for earnings in three of the trailing four quarters and met once, with the average surprise being 9.9%, as you can see below.

Pediatrix Medical’s Q4 Earnings Whispers

However, our proven model does not conclusively predict an earnings beat for MD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

MD has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Let’s see how things have shaped up before the fourth-quarter earnings announcement.

Q4 Factors to Note for Pediatrix Medical

Both the Zacks Consensus Estimate and our model estimate for fourth-quarter net patient service revenue indicate a 2.2% year-over-year decline. Moreover, both the consensus mark and our model estimate for hospital contract administrative fees predict a 2% decline from a year ago. These are likely to have affected the company’s top line in the fourth quarter.

Nevertheless, the Zacks Consensus Estimate for same-facility revenue growth is pegged at 4.3% for the fourth quarter thanks to same-facility patient volume growth of 1.6% and same-facility net reimbursement growth of 2.7%.

Also, our model estimate for total operating expenses predicts a more than 26% year-over-year decline. Lower practice salaries & benefits, practice supplies & other expenses and G&A costs are likely to have aided its bottom line.

Our model estimate for fourth-quarter interest expense is pegged below $10 million, indicating a continued year-over-year decline in the metric. We expect Pediatrix Medical’s fourth-quarter net income to be above $22 million, a significant jump from the year-ago period.

How Did Other Stocks Perform?

Here are some stocks in the broader Medical space that have already reported earnings for this quarter: HCA Healthcare, Inc. HCA, The Ensign Group, Inc. ENSG and The Cigna Group CI.

HCA Healthcare reported fourth-quarter 2024 adjusted EPS of $6.22, which outpaced the Zacks Consensus Estimate by 4.2%, driven byhigher patient volumes giving rise to an increased number of inpatient surgeries and same-facility emergency room visits. However, the upside was partly offset by elevated salaries and benefits expenses. Additional expenses due to Hurricane Helene and Hurricane Milton also impacted the results.

Ensign reported fourth-quarter 2024 adjusted earnings per share of $1.49, which outpaced the Zacks Consensus Estimate by 1.4% thanks to improved occupancy rates, higher patient days and higher skilled service revenues. The positives were partly offset by an elevated expense level, due to the higher cost of services and rents. 

Cigna reported fourth-quarter 2024 adjusted earnings per share of $6.64, which missed the Zacks Consensus Estimate by 15.2% due to a decline in its overall medical customer base and elevated medical costs. Nevertheless, the downside was partly offset by expanding specialty volumes in the Evernorth Health Services segment and new client wins.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cigna Group (CI) : Free Stock Analysis Report

Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report

HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report

The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research