Ensign Group raises 2026 profit forecast, Q3 revenue misses estimates
Third-quarter adjusted EPS of $2.03 was in line with the $2.01 consensus estimate compiled by Finnhub, while revenue of $1.48 billion fell short of the $1.54 billion estimate.
Key takeaways
- The Ensign Group Inc. (ENSG) said in a regulatory filing on Oct. 27 that it raised its 2026 earnings guidance to $7.94 to $8.02 per diluted share. Third-quarter adjusted earnings per share of $2.03 were in line with the $2.01 consensus estimate compiled by Finnhub. Revenue of $1.48 billion was below the $1.54 billion estimate.
The Ensign Group Inc. (ENSG) raised its 2026 earnings guidance on Oct. 27, according to a regulatory filing that also reported third-quarter results.
Adjusted earnings per share were $2.03, in line with the $2.01 consensus estimate compiled by Finnhub. Revenue of $1.48 billion was below the $1.54 billion estimate.
Here's how the company did:
- Adjusted EPS: $2.03 vs. $1.64 a year earlier, against the $2.01 expected, according to Finnhub
- GAAP diluted EPS: $1.76 vs. $1.42 a year earlier
- Revenue: $1.48 billion vs. $1.30 billion a year earlier, against the $1.54 billion expected, according to Finnhub
- Net income attributable to the company: $104.3 million vs. $83.8 million a year earlier
GAAP net income rose 24.4% from the prior-year quarter, and adjusted net income rose 24.9% to $120.5 million, the company said in its press release.
Revenue has risen in each of the last three quarters, from $1.30 billion in the third quarter of 2025 to $1.44 billion in the second quarter of 2026, according to its SEC filings.
2026 guidance
The company raised its 2026 earnings guidance to $7.94 to $8.02 per diluted share, up from the $7.75 to $7.85 range it gave on July 27.
Revenue guidance now runs from $5.89 billion to $5.92 billion, up from $5.87 billion to $5.92 billion on July 27. The company raised the lower end and kept the upper end.
“Due to the strength of the third quarter and our confidence in the fourth quarter, we are increasing our annual 2026 earnings guidance to $7.94 to $8.02 per diluted share,” CEO Barry Port said.
The guidance is based on about 59.5 million diluted weighted average shares and a 25.0% tax rate. It assumes acquisitions expected to close through the fourth quarter of 2026.
Segment results
Standard Bearer, the company’s real estate segment, reported rental revenue of $47.7 million, up 46.3% from a year earlier. Its funds from operations were $27.3 million, up 41.3%.
Same Facilities occupancy was 84.1%, up from 82.8% a year earlier. Same Facilities skilled mix revenue rose 10.7% from the prior-year quarter.
Acquisitions and growth
During the quarter and since, the company added 22 new operations, including three real estate assets and 19 leased operations. The company now operates 418 healthcare facilities in 18 states and owns 189 real estate assets.
Chief Investment Officer and Executive Vice President Chad Keetch said, “We continue to acquire new operations with significant long-term upside and expect to maintain a healthy pace of growth as we expand our mission driven approach to transform and dignify post-acute care.”
Since 2024, the company has sourced, closed and transitioned 122 new operations, according to the release.
Liquidity and dividend
The company had $337.6 million of cash on hand and $731.6 million of available line-of-credit capacity, Executive Vice President and Chief Financial Officer Suzanne Snapper said.
The company also paid a quarterly cash dividend of 6.5 cents per share.
The company will hold a webcast on Oct. 28 at 10 a.m. Pacific time to discuss the quarter.