National medical group MEDNAX, Inc. (MD), Friday, reported an increase in profit for the fourth quarter, which came in better than analysts' estimates, helped by higher revenues and lower practice salaries and benefits expense. The company also provided a guidance for the first quarter.
Net income increased to $50.40 million or $1.07 per share from $38.99 million or $0.85 per share in the same period last year.
Adjusted net income for the period rose 20% to $46.96 million or $1.00 per share. On average, 13 analysts polled by Thomson Reuters expected earnings of $0.98 per share for the quarter. Analysts' estimate typically exclude special items.
Net patient service revenue grew 12% to $333.29 million from $297.82 million in the comparable period last year. Twelve analysts were expecting revenues of $340.88 million for the period.
Same-unit revenue for the fourth quarter grew by 4.6%. Same-unit revenue growth attributable to patient volume was 1.9% across all of the company's services. Patient volume at neonatal intensive care units staffed by the company's physicians was essentially flat, declining by 0.1%.
Operating income for the quarter increased to $79.18 million from $65.38 million in the year-ago period. Adjusted operating income increased 18% to $77.4 million from $65.4 million in the comparable prior-year period.
Operating margin increased by 128 basis points to 23.23% from 21.95% in the same quarter last year, driven by lower practice salaries and benefits expense. For the full year, net income increased to $175.80 million or $3.78 per share from $169.20 million or $3.59 per share last year. Revenues for the year was up 21% to $1.29 billion from $1.07 billion last year.
Twelve analysts estimated earnings of $3.69 per share on revenues of $1.30 billion for the year.
Looking forward, the company said it expects to earn $0.78 to $0.84 per share for the 2010 first quarter, and also anticipates contributions from practice acquisitions within its neonatal, maternal-fetal and pediatric cardiology physician services to contribute to 2010 first quarter earnings. Analysts expects the company to earn $0.84 per share for the first quarter.
"This outlook anticipates a range for same-unit NICU patient volume of 1 percent lower to as much as 1 percent higher for the 2010 first quarter, when compared with the 2009 first quarter, as well as an assumption that the percentage of services reimbursed under government programs for the 2010 first quarter will be as much as one percentage point higher to as much as one percentage point lower than for the 2009 fourth quarter," the company said.
MD closed Thursday's regular trading at $57.01 per share on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.