Encompass Health's Q2 adjusted EPS beats estimates

Encompass Health

04/08/2025 21:32

Overview

Encompass Health Q2 2025 operating revenue grows 12% yr/yr, driven by discharges and pricing

Adjusted EPS for Q2 beats analyst expectations, per LSEG data

Company raises full-year guidance, indicating confidence in continued growth

Outlook

Company increases full-year adjusted EBITDA guidance to $1.22 bln-$1.25 bln

Full-year adjusted EPS guidance raised to $5.12-$5.34

Result Drivers

DISCHARGES AND PRICING - Revenue growth driven by a 7.2% increase in discharges and a 4.2% rise in net patient revenue per discharge

CAPACITY EXPANSION - Opened a new 60-bed hospital and added 26 beds to an existing facility, increasing capacity for inpatient rehabilitation care

EXPENSE LEVERAGE - Adjusted EBITDA increased 17.2% due to revenue growth and improved expense leverage

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Operating Revenue
$1.46 bln
Q2 Adjusted EPS
Beat
$1.40
$1.21 (12 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the healthcare facilities & services peer group is "buy"

Wall Street's median 12-month price target for Encompass Health Corp is $130.00, about 16.5% above its August 1 closing price of $108.53

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nPn9lMSMma

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)