Overview
Home health and hospice care provider Enhabit Q2 net service revenue grows 2.1% yr/yr to $266.1 mln
Adjusted EBITDA for Q2 beats analyst expectations, rising 6.7% yr/yr
Adjusted EPS of $0.13, exceeding estimates
Outlook
Enhabit updates 2025 revenue guidance to $1,060 mln-$1,073 mln
Company raises 2025 adjusted EBITDA forecast to $104 mln-$108 mln
Enhabit increases 2025 adjusted EPS guidance to $0.47-$0.55
Result Drivers
HOME HEALTH GROWTH - Admissions increased 1.3% yr/yr, aided by payer contract initiatives and stabilization in Medicare Fee-for-Service census
HOSPICE EXPANSION - Hospice average daily census rose 12.3% yr/yr, marking the sixth consecutive qtr of growth
DEBT REDUCTION - Enhabit reduced bank debt by $10 mln, enhancing liquidity and financial stability
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Beat
$0.13
$0.1 (6 Analysts)
Q2 EPS
$0.1
Q2 Adjusted EBITDA
Beat
$26.90 mln
$25.20 mln (5 Analysts)
Q2 Gross Margin
49.1%
Q2 Adjusted EBITDA Margin
10.1%
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "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 Enhabit Inc is $10.00, about 33.1% above its August 5 closing price of $6.69
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 20 three months ago
Press Release: ID:nBw712GZGa
(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.)