Enhabit beats Q3 adjusted EPS estimates, raises 2025 adjusted EPS guidance

Enhabit

05/11/2025 21:23

Overview

Enhabit Q3 adjusted EPS beats analyst expectations, reflecting strong execution on strategic priorities

Adjusted EBITDA for Q3 beats estimates, growing 10.2% year-over-year

Company reduced bank debt by $15 mln in Q3, achieving a leverage ratio of 3.9x

Outlook

Company updates 2025 net service revenue guidance to $1,058 mln to $1,063 mln

Enhabit revises 2025 adjusted EBITDA guidance to $106 mln to $109 mln

Company raises 2025 adjusted EPS guidance to $0.50 to $0.56

Result Drivers

HOSPICE GROWTH - Hospice segment net service revenue increased 20% year-over-year, contributing significantly to overall revenue growth

ADMISSIONS INCREASE - Home health admissions grew 3.6% year-over-year, with non-Medicare admissions up 10.4%

COST EFFICIENCY - Hospice cost per patient day decreased 3.1%, and home health cost per patient day improved year over year

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
$0.17
$0.12 (5 Analysts)
Q3 EPS
$0.22
Q3 Adjusted EBITDA
Beat
$27 mln
$26.10 mln (5 Analysts)
Q3 Gross Margin
48.50%
Q3 Adjusted EBITDA Margin
10.20%


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 $9.00, about 9.4% above its November 4 closing price of $8.15

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBwVj58fa

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(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.)