Health care services provider Encompass Health (NYSE: EHC) will be reporting earnings this Wednesday after market close. Here’s what you need to know.
Encompass Health beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $1.46 billion, up 12% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.
Is Encompass Health a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Encompass Health’s revenue to grow 9.7% year on year to $1.48 billion, slowing from the 11.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Encompass Health has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.
Looking at Encompass Health’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. HCA Healthcare delivered year-on-year revenue growth of 9.6%, beating analysts’ expectations by 3.3%, and Quest reported revenues up 13.2%, topping estimates by 3.3%. HCA Healthcare traded up 6.4% following the results while Quest was down 4.9%.
Read our full analysis of HCA Healthcare’s results here and Quest’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 7% on average over the last month. Encompass Health is up 1% during the same time and is heading into earnings with an average analyst price target of $139.08 (compared to the current share price of $127.18).
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