Pediatric physician sub-specialty and anesthesia services provider MEDNAX, Inc. (MD) reported Monday an increase in third-quarter profit that surpassed the Street view, reflecting contributions from acquisitions, same-unit revenue growth and operating efficiencies. The company currently projects earnings for the fourth quarter to come in above the Analysts' estimate.
For the third quarter, net income rose to $48.13 million or $1.03 per share from $37.39 million or $0.81 per share in the same period previous year. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.96 per share in the third quarter. Analysts' estimate typically excludes special items.
Income from operations improved 26% to $78.3 million from $62.2 million for the corresponding three-month period in the corresponding period last year.
Net patient service revenue for the quarter surged 24% to $331.27 million from $267.18 million. Ten analysts were expecting revenue of $324.21 million in the third quarter.
Same-unit revenue grew 7.4% year-over-year, including patient volume growth across all of the company's physician specialties and sub-specialties of 4.8% and growth of 2.6% pertaining to reimbursement factors.
MEDNAX revealed that higher reimbursement for services covered under third-party commercial payor programs accounted for the growth in same-unit revenue in the latest quarter.
For the nine-month period, net income dipped to $125.40 million or $2.71 per share from $130.22 million or $2.74 per share in fiscal 2008. Revenues grew 24% to $954.97 million from $770.46 million in the same period last year.
Looking ahead, for the fourth quarter, MEDNAX expects fourth-quarter earnings to range between $0.95 - $1.01 per share. Ten analysts currently forecast earnings of $0.94 a share for the quarter.
MD closed Friday's regular trading hours at $51.92 on the NYSE.
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