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FORT LAUDERDALE - Pediatrix Medical (TASE:BLWV) Group, Inc. (NYSE:MD) reported first quarter earnings that beat analyst expectations, but saw its revenue decline YoY, leading to a 6.5% drop in its stock price.
The healthcare services provider posted adjusted earnings per share of $0.33 for the first quarter of 2025, surpassing the analyst estimate of $0.24. However, revenue fell to $458.36 million from $495.1 million in the same quarter last year, though it still exceeded the consensus estimate of $451.44 million.
Pediatrix attributed the revenue decline primarily to practice dispositions, which was partially offset by a 6.2% increase in same-unit net revenue. The company reported that same-unit revenue from net reimbursement-related factors increased by 4.6%, while revenue attributable to patient volume grew by 1.6%.
"Our strong first quarter results reflect same-unit top-line outperformance versus our expectations, continued steady cost management and the successful results of the portfolio restructuring we completed last year," said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group.
Despite the revenue decline, Pediatrix raised its full-year 2025 Adjusted EBITDA outlook from a range of $215 million to $235 million to a new range of $220 million to $240 million. The company reported first quarter Adjusted EBITDA of $49 million.
Ordan added, "While we are raising our guidance, we remain mindful of the uncertainty that we face in the healthcare industry and the broad economic turbulence that is challenging virtually all companies."
The company’s shares fell 6.5% following the earnings release, suggesting investors may be focusing on the revenue decline despite the earnings beat and raised guidance.
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