Yahoo Finance Will Mednax's (MD) New Name Pediatrix Medical be Beneficial?
Mednax, Inc. MD announced changing its corporate name to Pediatrix Medical Group, Inc. The move is expected to take effect following the closing bell on Jul 1, 2022. The company is expected to retain its current ticker symbol “MD.”
The move is in line with Mednax’s strategy to improve brand awareness and is expected to highlight its exclusive focus on providing specialized services for women, babies and children. The company earlier highlighted that unifying its certain operations under the Pediatrix brand is expected to collectively promote its wide range of healthcare services, difficult earlier due to different brand names.
The company is expected to boost its services across maternal-fetal medicine, neonatology and obstetric, and 18 pediatric subspecialty offerings. The brand change is likely to incorporate a new Pediatrix logo for better awareness. Mednax is the successor of Pediatrix Medical Group, which was founded in Florida in 1979. The company has invested more than $25 million over the past five years in education, research, safety initiatives and others in order to enhance its service quality. Clinicians working with Pediatrix provide services to one in every four babies in the United States. It has more than 4,700 affiliated physicians and clinicians practicing in Puerto Rico and 38 U.S. states.
Rising patient volumes are boosting Mednax’s profit levels for the past few quarters, and this current brand evolution will likely further drive volumes in the coming days. Apart from that, the company is also focused on expanding its telehealth services in a bid to ensure access to healthcare even when staying at home. Given the easy access, we expect this business line to continue performing well going forward besides boosting profits. The company expects its adjusted EBITDA for 2022 to be at least $270 million, suggesting 1.7% growth from the 2021 figure.
Mednax’s stockholders are expected to have no required actions related to the name change. Their existing share certificates are expected to keep representing shares of Pediatrix Medical Group.
Price Performance
Mednax shares have decreased 41.1% in the past year against a 23.6% increase of the industry.
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Zacks Rank & Key Picks
Mednax currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical space are Select Medical Holdings Corporation SEM, Altimmune, Inc. ALT and Progyny, Inc. PGNY, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Select Medical’s earnings is currently pegged at $2.19 per share. SEM has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
Select Medical’s earnings beat estimates in each of the last four quarters, the average being 42%.
The Zacks Consensus Estimate for Altimmune’s 2022 bottom line indicates an 8.2% improvement from the 2021 levels. ALT has witnessed four upward estimate revisions in the past 60 days against none in the opposite direction.
Altimmune’s earnings beat estimates in three of the last four quarters and missed once on the remaining occasion.
The Zacks Consensus Estimate for Progyny’s 2022 bottom line has improved 4.5 times in the past 60 days. PGNY has witnessed three upward estimate revisions during the same time period against none in the opposite direction.
Progyny’s earnings beat estimates in each of the last four quarters, the average being 169.7%.
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