A Glimpse of Encompass Health's Earnings Potential
Encompass Health (NYSE:EHC) is preparing to release its quarterly earnings on Monday, 2025-08-04. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Encompass Health to report an earnings per share (EPS) of $1.21.
Anticipation surrounds Encompass Health's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings Track Record
In the previous earnings release, the company beat EPS by $0.18, leading to a 11.79% increase in the share price the following trading session.
Here's a look at Encompass Health's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.19 | 1.03 | 0.94 | 1.01 |
| EPS Actual | 1.37 | 1.17 | 1.03 | 1.11 |
| Price Change % | 12.0% | 1.0% | 7.000000000000001% | -6.0% |
Tracking Encompass Health's Stock Performance
Shares of Encompass Health were trading at $110.11 as of July 31. Over the last 52-week period, shares are up 21.05%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Insights Shared by Analysts 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 given Encompass Health a total of 2 ratings, with the consensus rating being Outperform. The average one-year price target is $135.0, indicating a potential 22.6% upside.
Comparing Ratings Among Industry Peers
The analysis below examines the analyst ratings and average 1-year price targets of Universal Health Services, Ensign Group and Tenet Healthcare, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Universal Health Services, with an average 1-year price target of $222.0, suggesting a potential 101.62% upside.
- Analysts currently favor an Neutral trajectory for Ensign Group, with an average 1-year price target of $167.5, suggesting a potential 52.12% upside.
- Analysts currently favor an Outperform trajectory for Tenet Healthcare, with an average 1-year price target of $194.21, suggesting a potential 76.38% upside.
Comprehensive Peer Analysis Summary
The peer analysis summary outlines pivotal metrics for Universal Health Services, Ensign Group and Tenet Healthcare, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Encompass Health | Outperform | 10.59% | $630.90M | 7.17% |
| Universal Health Services | Outperform | 4.49% | $3.70B | 5.11% |
| Ensign Group | Neutral | 18.48% | $198.79M | 4.28% |
| Tenet Healthcare | Outperform | 3.19% | $4.34B | 7.26% |
Key Takeaway:
Encompass Health ranks highest in Revenue Growth among its peers. It also leads in Gross Profit. However, it falls behind in Consensus rating. In terms of Return on Equity, Encompass Health is also at the top compared to its peers.
Unveiling the Story Behind Encompass Health
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.
Understanding the Numbers: Encompass Health's Finances
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: Encompass Health's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 10.59%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.
Net Margin: Encompass Health's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.41%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Encompass Health's ROE excels beyond industry benchmarks, reaching 7.17%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Encompass Health's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.3% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 1.25, 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.