What to Expect from Encompass Health's Earnings

Encompass Health EHC is set to give its latest quarterly earnings report on Monday, 2024-10-28. Here's what investors need to know before the announcement.

Analysts estimate that Encompass Health will report an earnings per share (EPS) of $0.94.

Investors in Encompass Health are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

Last quarter the company beat EPS by $0.10, which was followed by a 5.56% drop in the share price the next day.

Here's a look at Encompass Health's past performance and the resulting price change:

Market Performance of Encompass Health's Stock

Shares of Encompass Health were trading at $94.66 as of October 24. Over the last 52-week period, shares are up 54.05%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on Encompass Health

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Encompass Health.

Analysts have provided Encompass Health with 8 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $107.0, suggesting a potential 13.04% upside.

Understanding Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Ensign Group, PACS Group and Acadia Healthcare Co, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Outperform trajectory for Ensign Group, with an average 1-year price target of $164.0, indicating a potential 73.25% upside.
• Analysts currently favor an Buy trajectory for PACS Group, with an average 1-year price target of $43.71, suggesting a potential 53.82% downside.
• Analysts currently favor an Neutral trajectory for Acadia Healthcare Co, with an average 1-year price target of $86.8, suggesting a potential 8.3% downside.

Insights: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Ensign Group, PACS Group and Acadia Healthcare Co, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Encompass Health ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity.

Delving into Encompass Health's Background

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.

Encompass Health: A Financial Overview

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Over the 3 months period, Encompass Health showcased positive performance, achieving a revenue growth rate of 9.61% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 8.71%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Encompass Health's ROE stands out, surpassing industry averages. With an impressive ROE of 6.33%, 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 1.8%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 1.6, Encompass Health adopts a prudent financial strategy, indicating a balanced approach to debt management.

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.