Ensign Group Updates 2014 EPS View; Issues 2015 Guidance - Quick Facts

(RTTNews) - Ensign Group Inc. (ENSG) announced that it has issued updated 2014 annual guidance reflecting the impact of the spin-off of CareTrust REIT, Inc., which was completed on June 1, 2014, and issued 2015 annual guidance.

The company reaffirmed 2014 guidance for projected revenue at $1.01 billion to $1.025 billion and updated 2014 annual earnings guidance, projecting net income of $50.1 million to $51.2 million and $2.16 to $2.21 per share for the year. The company said in May that it anticipated earnings to be in the range of $2.74 to $2.81 per share.

Analysts polled by Thomson Reuters expect the company to report earnings of $2.26 per share and revenues of $1.01 billion for fiscal 2014. Analysts' estimates typically exclude special items.

The updated guidance is based on the impact of the separation of Ensign's healthcare business and certain real estate assets that was completed on June 1, 2014, which resulted in an increase in rent and diluted weighted average common shares to 23.2 million, and a reduction in depreciation and interest expenses. The guidance also assumes, among other things, acquisitions anticipated to be closed this year, anticipated Medicare and Medicaid reimbursement rate increases net of provider taxes, and tax rates of 38.5%.

Looking ahead for 2015, the company expects net income to be in the range of $58.1 million to $60.2 million and $2.44 to $2.53 per share, on projected revenues of $1.14 billion to $1.16 billion. Wall Street currently is looking for fiscal year 2015 earnings of $2.52 per share on annual revenues of $1.10 billion.

Ensign also announced that it expects to issue its second quarter 2014 financial results on Thursday, August 7, 2014.