Encompass Health stock up 3% on strong Q1 results, raised guidance

Published 24/04/2025, 21:32
Encompass Health stock up 3% on strong Q1 results, raised guidance

BIRMINGHAM, Ala. - Encompass Health Corporation (NYSE:EHC) saw its shares jump 3.3% after the inpatient rehabilitation hospital operator reported first quarter results that beat analyst expectations and raised its full-year outlook.

The company posted adjusted earnings per share of $1.37, surpassing the consensus estimate of $1.20. Revenue came in at $1.46 billion, topping expectations of $1.43 billion and representing a 10.6% increase from the same period last year.

Encompass Health’s strong performance was driven by a 6.3% rise in total patient discharges, including 4.4% same-store growth. Net patient revenue per discharge also grew 3.9% year-over-year.

"We are very pleased with our first quarter performance, which drove a 10.6% increase in revenue and a 14.9% increase in Adjusted EBITDA," said President and CEO Mark Tarr.

The company raised its full-year 2025 guidance, now expecting adjusted earnings per share of $4.85 to $5.10, up from its previous forecast of $4.67 to $4.96. It also increased its revenue outlook to a range of $5.85 billion to $5.93 billion, compared to the prior $5.8 billion to $5.9 billion range.

Encompass Health opened one new 40-bed hospital and added 25 beds to existing facilities during the quarter as it continues to expand capacity. The positive results and optimistic outlook underscore the company’s strong positioning in the inpatient rehabilitation market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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