Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Encompass Health Corporation (NYSE:EHC), the largest owner and operator of inpatient rehabilitation hospitals in the United States, reported second-quarter earnings that exceeded analyst expectations and raised its full-year outlook, sending shares up 3.4% in trading.
The company posted adjusted earnings per share of $1.40 for the quarter ended June 30, 2025, significantly beating the analyst estimate of $1.21. Revenue came in at $1.46 billion, surpassing the consensus estimate of $1.43 billion and representing a 12.0% increase compared to the same period last year.
"During the quarter, we further increased our capacity to serve patients in need of inpatient rehabilitation care, opening a new 60-bed hospital in Fort Myers, Florida, and adding 26 beds to an existing hospital," said President and Chief Executive Officer Mark Tarr.
The strong performance was driven by a 7.2% increase in total patient discharges, including same-store discharge growth of 4.7%. Net patient revenue per discharge also grew by 4.2% compared to the second quarter of 2024.
Encompass Health’s cash flows from operating activities increased 24.3% to $270.2 million, primarily due to higher net income. Adjusted EBITDA rose 17.2% to $318.6 million, reflecting increased revenue and expense leverage.
Following the strong quarterly results, the company raised its full-year 2025 guidance. Encompass Health now expects revenue between $5.88 billion and $5.98 billion, up from its previous forecast of $5.85 billion to $5.93 billion, and above the analyst consensus of $5.89 billion. The company also increased its adjusted earnings per share guidance to $5.12-$5.34, exceeding the consensus estimate of $5.02.
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