Ensign Group Q2 profit beats on higher occupancy rates

Overview

• US skilled nursing operator's Q2 revenue rose 17%, adjusted EPS beat analyst expectations

• Adjusted EPS for Q2 rose 21% year-over-year, beating consensus

• Company raised 2026 annual earnings and revenue guidance after strong Q2 results

Outlook

• Ensign raises 2026 annual EPS guidance to $7.75-$7.85 from $7.48-$7.62

• Company raises 2026 annual revenue guidance to $5.87 bln-$5.92 bln from $5.81 bln-$5.86 bln

• Company expects to maintain a healthy pace of acquisitions through Q3 2026

Result Drivers

• OCCUPANCY AND SKILLED MIX - Higher occupancy rates and increased skilled mix revenue and days drove growth, per CEO Barry Port

• ACQUISITIONS - Addition of 20 new operations, including real estate assets, contributed to revenue growth, per Chief Investment Officer Chad Keetch

• CLINICAL OUTCOMES - Superior CMS quality ratings and lower rehospitalization rates supported demand and financial results

Company press release: ID:nGNX45dC0G

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities services peer group is "buy"

• Wall Street's median 12-month price target for Ensign Group, Inc is $222.38, about 28.6% above its July 24 closing price of $172.99

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 26 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)