It has been about a month since the last earnings report for Ensign Group (ENSG). Shares have added about 5.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ensign Group due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for The Ensign Group, Inc. before we dive into how investors and analysts have reacted as of late.
Ensign Group Q4 Earnings Beat Estimates on Growing Occupancy
Ensign Group reported a fourth-quarter 2025 adjusted EPS of $1.82, which beat the Zacks Consensus Estimate by 4%. The bottom line improved 19.5% year over year.
Operating revenues advanced 20.2% year over year to $1.36 billion. The top line missed the consensus mark by 0.5%.
The strong earnings were supported by improved occupancy rates, higher patient days and higher skilled service performance. The positives were partly offset by higher expenses.
ENSG’s Q4 Update
Ensign Group’s adjusted net income of $107.8 million rose 23.2% year over year in the quarter under review. Same-facilities occupancy improved 240 basis points (bps) to 83.8%, while transitioning-facilities occupancy increased 290 bps year over year to 84.9%.
Total expenses escalated 19.9% year over year to $1.24 billion due to higher cost of services, rent and G&A costs, but came lower than our estimate of $1.25 billion.
Ensign Group’s Segmental Update
Skilled Services: The segment’s revenues were $1.3 billion in the fourth quarter, which grew 20.2% year over year but missed our estimate by 1.5%. The metric benefited from the back of higher occupancy rates and improved patient days. Segment income of $169.3 million advanced from $141 million a year ago. Skilled nursing facilities and campus operations of the segment totaled 326 and 31, respectively, at the quarter-end.
Standard Bearer: Rental revenues climbed 37.2% year over year to $34.5 million in the quarter under review. The metric was aided by buyouts. Segment income of $10.3 million advanced 38.3% year over year. Funds from operations were $20.4 million, which increased 33.9% year over year.
ENSG’s Financial Update (As of Dec. 31, 2025)
Ensign Group exited the fourth quarter with cash and cash equivalents of $503.9 million, which rose from the 2024-end figure of $464.6 million. It had a leftover capacity of $591.6 million under its line of credit at the fourth-quarter end. Total assets of $5.5 billion increased from the $ 4.7 billion level at 2024-end.
Long-term debt — less current maturities — was $137.5 million, down from the $141.6 million figure as of Dec. 31, 2024. Current maturities of long-term debt amounted to $4.2 million.
Total equity of $2.2 billion advanced from the 2024-end figure of $1.8 billion.
ENSG generated net cash from operations of $564.3 million in 2025, which increased from $347.2 million.
ENSG Provides 2026 Outlook
Revenues are forecasted to lie between $5.77 billion and $5.84 billion in 2026, up from the 2025 level of $5.06 billion, which grew 18.7% year over year. Adjusted EPS is anticipated to be within $7.41-$7.61 for 2026, higher than the 2025 level of $6.57, which grew 19.5% from a year ago.
The weighted average common shares outstanding is currently estimated at around 60 million and the tax rate is expected to be 25%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Ensign Group has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. 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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