The Ensign Group Inc. (NASDAQ:ENSG) reported second-quarter results that exceeded Wall Street expectations on Monday, prompting the healthcare operator to raise its financial guidance for the full year.
Shares of the skilled nursing and senior living provider gained 1.65% in pre-market trading following the earnings announcement.
Adjusted earnings per share came in at $1.92, ahead of analysts’ consensus estimate of $1.84. Revenue increased 17.3% year over year to $1.44 billion, surpassing market expectations of $1.43 billion.
Company raises 2026 earnings and revenue guidance
Following the stronger-than-expected quarter, Ensign increased its 2026 earnings forecast to between $7.75 and $7.85 per diluted share, compared with its previous outlook of $7.48 to $7.62.
The midpoint of the updated guidance, $7.80 per share, is above analysts’ consensus estimate of $7.56.
The company also lifted its revenue forecast to a range of $5.87 billion to $5.92 billion, up from prior guidance of $5.81 billion to $5.86 billion. The new midpoint of $5.90 billion also exceeds the consensus forecast of $5.84 billion.
Occupancy and Medicare revenue continue to improve
“This quarter’s results are another reflection of that enduring connection between the commitment of our local leaders to delivering high-quality care in their communities and our financial performance,” said Barry Port, Chief Executive Officer.
GAAP diluted earnings per share rose 16.7% from the same period last year to $1.68.
Same Facility occupancy increased to 84.1%, representing a 2.7 percentage point improvement year over year. Revenue generated from skilled nursing services within the Same Facility portfolio grew 10.1%, while Medicare revenue increased 9.8%.
Expansion strategy accelerates
Ensign continued to expand its footprint during the quarter by adding 20 new operations, with each acquisition including the underlying real estate.
Since the beginning of 2024, the company has completed 102 acquisitions across multiple markets.
The portfolio now includes 398 healthcare operations spanning 17 U.S. states, supported by ownership of 183 real estate assets.
Ensign Group stock price
