Mednax grows profits 14%
A string of acquisitions fueled Mednax’s growth as its profit grew by 14 percent in the second quarter.
The Sunrise-based company (NYSE: MD), which provides neonatal, maternal-fetal, pediatric and anesthesia physician services, earned $49.4 million, or $1.04 a share, on $349.1 million in revenue in the second quarter. That’s up from net income of $43.2 million, or 93 cents a share, on revenue of $319.8 million in the same quarter last year.
Its earnings in the recent quarter came in better than the $1.04 a share expected by the Thomson Reuters consensus of stock analysts.
Mednax bought seven physician groups in the first half of the year, including three in the second quarter. One acquisition was in Fort Lauderdale.
The company’s existing locations had 2.3 percent revenue growth due to better reimbursements for patient care. Patient volume at existing neonatal intensive care units was essentially unchanged.
For the third quarter, Mednax projects net income between $1.03 and $1.07 a share.
Mednax shares closed Monday at $47.20. The 52-week high was $61.60 on Jan. 4. The 52-week low was $44.83 on Friday.
Filed under: economics by Wolf