Why Are Encompass Health Shares Tanking Today Premarket?

Encompass Health Corporation EHC posted Q4 sales of $1.32 billion, +8.6% Y/Y, in line with the consensus of $1.32.

• Revenue growth resulted from solid discharge growth and favorable pricing in the inpatient rehabilitation segment.
• Adjusted EPS increased 4.3% to $0.97, missing the consensus of $1.05.
• Related: Encompass Health Plans To Split Into Two - Inpatient Rehabilitation And Home Health & Hospice.
• Inpatient rehabilitation segment sales increased 11.7% to $1.04 billion from increased volumes and pricing.
• Total discharge growth for Q4 FY21 was 9.6%, with same-store growth of 6.0%.
• Net patient revenue per discharge was up 1.2%, primarily from increased reimbursement rates, partially offset by the payor mix.
• Home health and hospice segment sales declined 1.8% to $276.1 million.
• Home health total admissions increased 4.7%, and same-store total admissions increased 2.4%. Home health revenue per episode increased 4.4%.
• Episodic admissions declined 7.2% in Q4.
• Guidance: For FY22, Encompass Health expects revenues of $5.38 billion - $5.50 billion (consensus of $5.50 billion).
• The Company forecasts adjusted EBITDA of $1.015 billion - $1.065 billion, with adjusted EPS of $3.83 - $4.19, below the consensus of $4.36.
• Price Action: EHC shares are down 7.26% at $57.00 during the premarket session on the last check Wednesday.