Ensign Group Boosts 2025 Earnings and Revenue Forecasts, Analysts Predict 10% Upside

Ensign Group (ENSG) has boosted its 2025 earnings forecast to $6.34-$6.46 per share and revenue to $4.99-$5.02 billion. Analysts predict an average price target of $166.33, with potential upside of over 10% from current levels. GuruFocus' GF Value suggests the stock is slightly undervalued, hinting at a 6.3% growth opportunity.

Ensign Group, Inc. (Nasdaq: ENSG), a leading provider of post-acute healthcare services and long-term healthcare investments, has announced significant improvements in its financial outlook for 2025. The company reported strong second-quarter results and subsequently raised its annual earnings and revenue guidance.

Key Highlights:
- Earnings Guidance: The company has increased its annual 2025 earnings per diluted share forecast to a range of $6.34 to $6.46, up from the previously raised guidance of $6.22 to $6.38 per share. This represents an increase of over 16% compared to 2024 results and a 34% increase from 2023 results.
- Revenue Guidance: Ensign Group has also raised its annual revenue forecast to $4.99 billion to $5.02 billion, up from the prior guidance of $4.89 billion to $4.94 billion. This reflects the company's robust performance in the second quarter and anticipated acquisitions through the third quarter.

Analysts predict an average price target of $166.33 for Ensign Group's stock, with potential upside of over 10% from current levels. GuruFocus' GF Value suggests that the stock is slightly undervalued, indicating a 6.3% growth opportunity.

Ensign Group's Chief Executive Officer, Barry Port, attributed the company's strong performance to the dedication of local teams and the continuous improvement in clinical results. The company's strategy of acquiring new operations and expanding its portfolio has been instrumental in driving growth. Additionally, the company's financial health remains strong, with approximately $364.0 million in cash on hand and $592.6 million in available capacity under its line-of-credit.

The company's portfolio now consists of 348 healthcare operations, 31 of which include senior living operations, across 17 states. Ensign Group owns 146 real estate assets, with 110 operated by an Ensign affiliate. The company continues to focus on both leasing and acquiring real estate assets, aiming to provide a comprehensive solution to healthcare needs in various markets.

Ensign Group's Standard Bearer segment reported $31.5 million in revenue and $18.4 million in FFO for the quarter. The company also paid a quarterly cash dividend of $0.0625 per share of Ensign common stock.

References:
[1] https://finance.yahoo.com/news/ensign-group-reports-second-quarter-200700212.html