Encompass Health stock gains 5% as Q3 results top estimates, guidance raised

BIRMINGHAM, Ala. - Encompass Health Corporation (NYSE:EHC ) saw its shares jump over 5% in after-hours trading Monday after the inpatient rehabilitation hospital operator reported third quarter results that beat analyst expectations and raised its full-year outlook.

The company posted adjusted earnings per share of $1.03 for Q3, surpassing the consensus estimate of $0.94. Revenue came in at $1.35 billion, ahead of the $1.33 billion analysts were expecting and up 11.9% year-over-year.

Encompass Health cited strong discharge growth of 8.8%, including same-store growth of 6.8%, as a key driver of the revenue increase. Net revenue per discharge also grew 2.5% compared to the prior year period.

"We are very pleased with our third quarter performance as strong discharge growth facilitated an increase of 11.9% in revenue and 13.4% in Adjusted EBITDA," said President and CEO Mark Tarr in a statement.

Looking ahead, the company raised its full-year 2024 guidance. Encompass Health now expects adjusted EPS of $4.19 to $4.33, up from its previous outlook of $3.97 to $4.22 and above the $4.19 consensus. It also boosted its revenue forecast to a range of $5.325 billion to $5.375 billion, compared to $5.275 billion to $5.350 billion previously.

The improved outlook suggests continued momentum in patient volumes and pricing power for Encompass Health's inpatient rehabilitation services.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com