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Healthcare Stocks Reporting Earnings This Week: CIVI, ENSG

Entering the last leg of Q1 earnings, we see that 6 out of 16 sectors have concluded their quarterly reporting. Retail is the only sector that has a substantial number of companies left to report.

Notably, Medical is one of the 7 Zacks sectors that are expected to report earnings growth in the March quarter. As per the latest Earnings Trend Report, 92.5% of the Medical sector companies were out with their quarterly reports, clocking earnings growth of 8.1% and revenue improvement of 10%.

We now take a look at 2 Healthcare companies lined up to report earnings this week:

Civitas Solutions Inc. CIVI offers home and community-based health and human services to must-serve individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. As of Dec 31, 2015, the company operated in 35 states, serving approximately 11,600 clients in residential settings and more than 14,400 clients in non-residential settings.

Civitas is scheduled to report second-quarter fiscal 2016 earnings results on May 10. Our proven model does not conclusively show that the company is likely to beat earnings, given the combination of Zacks Rank #3 (Hold) and Earnings ESP of 0.00%.

That is because, as per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. Simultaneously, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
 
Meanwhile, we note that Civitas’ results compared favorably with the Zacks Consensus Estimate in the last four quarters, with an average beat of 2.74%.



The Ensign Group Inc. ENSG offers skilled nursing, rehabilitative care services, home health, home care, hospice care, assisted living and urgent care services. As of Dec 31, 2015, the company operated 186 skilled nursing and assisted living facilities, 32 home health, hospice and home care businesses and 17 urgent care centers.

The Ensign Group is set to report first-quarter 2016 results on May 11. However, earnings may disappoint estimates due to the combination of an Earnings ESP of -11.77% and Zacks Rank #4.

Notably, The Ensign Group missed the Zacks Consensus Estimate in two of the last four quarters, with an average surprise of -1.50%.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CIVITAS SOLUTNS (CIVI): Free Stock Analysis Report
 
ENSIGN GROUP (ENSG): Free Stock Analysis Report
 
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