Pediatrix Q4 Beats Estimates As Operational Improvements Drive Performance

Zinger Key Points

Q4 revenue hit $502.36 million, exceeding the $486.21 million consensus, with an 8.7% same-unit revenue increase.
Adjusted EPS rose to 51 cents, beating the 37 cents estimate, as payor mix and cost cuts boosted margins.
Get real-time earnings alerts before the market moves and access expert analysis that uncovers hidden opportunities in the post-earnings chaos.

On Thursday, Pediatrix Medical Group, Inc. MD reported fourth-quarter sales of $502.36 million. That’s up from $496.4 million a year ago, beating the consensus of $486.21 million.

The increase reflected growth in same-unit revenue of 8.7%, partially offset by the impact of the non-same-unit activity, primarily practice dispositions.

The physician services provider reported adjusted EPS of 51 cents. That’s up from 32 cents a year ago, beating the consensus of 37 cents.

“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 Ordan, Chief Executive Officer of Pediatrix Medical.

Same-unit revenue from net reimbursement-related factors increased by 5.9% for the 2024 fourth quarter, reflecting an improved payor mix and modest improvements in hospital contract administrative fees.

The percentage of services reimbursed by commercial and other non-government payors increased by approximately 200 basis points compared to the prior year period.

Same-unit revenue attributable to patient volume increased by 2.8%.

Guidance: On a preliminary basis, Pediatrix anticipates its 2025 Adjusted EBITDA of approximately between $215 million to $235 million.

William Blair writes, “While the midpoint of the 2025 adjusted EBITDA guidance range anticipates barely any growth this year, we believe this is likely a conservative estimate; however, given the magnitude of the beat in 2024, the majority of the planned asset divestitures could have been already largely realized at this point.”

Analyst Ryan Daniels sees Pediatrix as a strong healthcare services company with a good balance of risk and reward for long-term investors. Management’s focus on improving operations, optimizing revenue cycle management, and cutting costs should boost performance. With shares trading at about 7.5 times 2025 EBITDA target, William Blair maintains Outperform rating.

Price Action: Pediatrix stock is up 24% at $17.50 at last check Thursday.

Read Next: