Can Lower Expenses Save Pediatrix Medical's Q1 Earnings?

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Physician services provider Pediatrix Medical Group, Inc. MD is set to report its first-quarter 2025 results on May 6, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 25 cents per share and $454.5 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 25%. However, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decrease of 8.2%.

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Zacks Investment Research

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For 2025, the Zacks Consensus Estimate for Pediatrix Medical’s revenues is pegged at $1.9 billion, implying a decline of 6.6% year over year. Yet, the consensus mark for current year EPS is pegged at $1.55, implying growth of 2.7% on a year-over-year basis.

Pediatrix Medical beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 19.4%, as you can see below.

Pediatrix Medical Group, Inc. Price and EPS Surprise

Pediatrix Medical Group, Inc. Price and EPS Surprise
Pediatrix Medical Group, Inc. Price and EPS Surprise

Pediatrix Medical Group, Inc. price-eps-surprise | Pediatrix Medical Group, Inc. Quote

Pediatrix Medical’s Q1 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.

MDhas an Earnings ESP of 0.00% and a Zacks Rank #2. 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 first-quarter earnings announcement.

Q1 Factors to Note for Pediatrix Medical

Both the Zacks Consensus Estimate and our model estimate for first-quarter net patient service revenue indicate a 7.6% year-over-year decline. Moreover, both the consensus mark and our model estimate for hospital contract administrative fees predict a 10.7% decline from a year ago. These are likely to have affected the company’s top line in the first quarter.

The Zacks Consensus Estimate for same-facility revenue growth is pegged at 0.75% for the first quarter, as the same-facility patient volume growth is pegged at 0% and same-facility net reimbursement growth is pegged at 0.75%. The consensus mark for same-facility NICU patient days growth is pegged at 1.9%.