Encompass Health (NYSE:EHC) is preparing to release its quarterly earnings on Thursday, 2025-04-24. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Encompass Health to report an earnings per share (EPS) of $1.20.
Anticipation surrounds Encompass Health's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings History Snapshot
In the previous earnings release, the company beat EPS by $0.14, leading to a 1.28% increase in the share price the following trading session.
Here's a look at Encompass Health's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.03 | 0.94 | 1.01 | 0.94 |
| EPS Actual | 1.17 | 1.03 | 1.11 | 1.12 |
| Price Change % | 1.0% | 7.000000000000001% | -6.0% | -0.0% |
Encompass Health Share Price Analysis
Shares of Encompass Health were trading at $99.0 as of April 22. Over the last 52-week period, shares are up 22.13%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Observations about Encompass Health
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Encompass Health.
The consensus rating for Encompass Health is Outperform, based on 3 analyst ratings. With an average one-year price target of $116.0, there's a potential 17.17% upside.
Understanding Analyst Ratings Among Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Universal Health Services, Tenet Healthcare and Ensign Group, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Universal Health Services, with an average 1-year price target of $219.86, suggesting a potential 122.08% upside.
- Analysts currently favor an Outperform trajectory for Tenet Healthcare, with an average 1-year price target of $161.0, suggesting a potential 62.63% upside.
- Analysts currently favor an Outperform trajectory for Ensign Group, with an average 1-year price target of $160.33, suggesting a potential 61.95% upside.
Peer Metrics Summary
Within the peer analysis summary, vital metrics for Universal Health Services, Tenet Healthcare and Ensign Group are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Encompass Health | Outperform | 12.69% | $585.90M | 5.87% |
| Universal Health Services | Neutral | 11.08% | $3.71B | 5.01% |
| Tenet Healthcare | Outperform | -5.71% | $4.14B | 7.95% |
| Ensign Group | Outperform | 15.49% | $178.91M | 4.45% |
Key Takeaway:
Encompass Health ranks first in revenue growth among its peers. It has the highest gross profit margin. Encompass Health has the lowest return on equity compared to its peers.
About Encompass Health
Encompass Health Corp provides post-acute healthcare services in the United States through a network of inpatient rehabilitation hospitals. Inpatient rehabilitation contributes the majority of the firm's revenue and provides specialized rehabilitative treatment through a network of inpatient hospitals. These hospitals are concentrated in the eastern half of the United States and Texas.
Breaking Down Encompass Health's Financial Performance
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Positive Revenue Trend: Examining Encompass Health's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.69% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.
Net Margin: Encompass Health's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.41% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Encompass Health's ROE stands out, surpassing industry averages. With an impressive ROE of 5.87%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Encompass Health's ROA excels beyond industry benchmarks, reaching 1.82%. This signifies efficient management of assets and strong financial health.
Debt Management: Encompass Health's debt-to-equity ratio is below the industry average at 1.31, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Encompass Health visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.