Health care services provider Encompass Health (NYSE: EHC) will be reporting results this Thursday after market hours. Here’s what to look for.
Encompass Health met analysts’ revenue expectations last quarter, reporting revenues of $1.48 billion, up 9.4% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ full-year EPS guidance estimates but a slight miss of analysts’ same-store sales 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 9.6% year on year to $1.54 billion, slowing from the 12.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.30 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 missed Wall Street’s revenue estimates twice over the last two years.
Looking at Encompass Health’s peers in the healthcare providers & services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. DaVita delivered year-on-year revenue growth of 9.9%, beating analysts’ expectations by 3.2%, and HCA Healthcare reported revenues up 6.7%, falling short of estimates by 1%. DaVita traded up 21.2% following the results while HCA Healthcare was also up 4%.
Read our full analysis of DaVita’s results here and HCA Healthcare’s results here.
Investors in the healthcare providers & services segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Encompass Health is down 12.4% during the same time and is heading into earnings with an average analyst price target of $141.73 (compared to the current share price of $94.27).
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