It has been about a month since the last earnings report for Ensign Group (ENSG). Shares have lost about 1.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ensign Group due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for The Ensign Group, Inc. before we dive into how investors and analysts have reacted as of late.
Ensign Group Q3 Earnings Beat Estimates
The Ensign Group reported a third-quarter 2025 adjusted EPS of $1.64, which beat the Zacks Consensus Estimate by 3.1%. The bottom line improved 18% year over year.
Operating revenues advanced 19.8% year over year to $1.3 billion. The top line surpassed the consensus mark by 2.5%.
The strong results were supported by improved occupancy rates, higher patient days and higher skilled service revenues. The positives were partly offset by improved occupancy rates, higher patient days and higher skilled service revenues.
ENSG’s Q3 Update
Ensign Group’s adjusted net income of $96.5 million rose 18.9% year over year in the quarter under review.
Same-facilities occupancy improved 210 basis points (bps), while transitioning-facilities occupancy increased 360 bps year over year.
Total expenses escalated 20.9% year over year to $1.2 billion, higher than our estimate by 3.6%.
Ensign Group’s Segmental Update
Skilled Services: The segment’s revenues were $1.2 billion in the third quarter, which grew 19.9% year over year and beat our estimate by 1.6%. The metric benefited on the back of higher occupancy rates and improved patient days. Segment income of $153.1 million advanced 19.2% year over year.
Skilled nursing facilities and campus operations of the segment totaled 314 and 31, respectively, at the end.
Standard Bearer: Rental revenues climbed 33.5% year over year to $32.6 million in the quarter under review. The metric was aided by buyouts. Segment income of $9.6 million advanced 32.3% year over year.
Funds from operations were $19.3 million, which increased 31% year over year.
ENSG’s Financial Update (As of Sept. 30, 2025)
Ensign Group exited the third quarter with cash and cash equivalents of $443.7 million, which fell 4.5% from the 2024-end figure. It had a leftover capacity of $592.6 million under its line of credit at the third-quarter end.
Total assets of $5.2 billion increased 11.9% from the level at 2024-end.
Long-term debt — less current maturities — was $138.6 million, down 2.1% from the figure as of Dec. 31, 2024. Current maturities of long-term debt amounted to $4.2 million.
Total equity of $2.1 billion advanced 15.3% from the 2024-end figure.
ENSG generated net cash from operations of $381 million in the first nine months of 2025, which increased 54.4% year over year.
Ensign Group’s Capital-Deployment Update
Ensign Group didn’t buy back shares in the third quarter of 2025. In the first nine months of 2025, management paid dividends worth $10.8 million.
ENSG Raises 2025 Outlook
Revenues are forecasted to lie between $5.05 billion and $5.07 billion, up from the prior view of $4.99-$5.02 billion. The mid-point of the revised outlook indicates an improvement of 18.8% from the 2024 figure.
Adjusted EPS is anticipated to be within $6.48-$6.54 for 2025, higher than the earlier view of $6.34-$6.46. The mid-point of the updated guidance indicates 18.4% growth from the 2024 figure.
The weighted average common shares outstanding is currently estimated at around 59 million and the tax rate is reiterated to be 25%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, Ensign Group has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ensign Group has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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The Ensign Group, Inc. (ENSG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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