Physician services provider Mednax, Inc. (MD) reported impressive second-quarter results, aided by robust demand for its services. The company specializes in prenatal, neonatal, and pediatric care services. Shares jumped 9.3% on the news, closing at $33.14 on August 6.
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Net revenue for the quarter came in at $472.96 million, up 13.8% year-over-year, and outpaced the Street’s estimate of $448.94 million. Additionally, the company’s same-unit revenue grew 13.4%, compared to the same period last year.
On top of this, adjusted earnings stood at $0.41 per share, an increase of 57.7% compared to the prior-year quarter, and beat analysts’ estimates of $0.32 per share. (See Mednax stock charts on TipRanks)
The company’s CEO, Mark S. Ordan, attributed the company’s superior performance to strong patient volume trends across all of its services provided.
Ordan said, “We believe these trends, combined with our focus on women’s and children’s care, operating efficiency and growth in many areas of pediatric subspecialty services, together put us on a very positive forward path.”
Following the earnings release, Stifel Nicolaus analyst Tao Qiu reiterated a Hold rating on the stock but lifted the price target to $35 (5.6% upside potential) from $30.
Overall, the stock has a Hold consensus rating based on 5 Holds and 1 Sell. The average Mednax price target of $32 implies 3.4% downside potential to current levels. Shares have gained 56.3% over the past year.
Meanwhile, TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Mednax is currently Neutral.
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