Encompass Health (EHC) Q4 2024 Earnings Surpass Estimates

Key Highlights:

* Q4 revenue: $1.41 billion (12.7% YoY growth, 1.8% beat)
* Adjusted EPS: $1.17 (14.2% beat)
* Adjusted EBITDA: $289.6 million (8% beat)

Full-Year Guidance:

* Revenue: $5.85 billion (8.9% growth)
* Adjusted EPS: $4.81 (0.9% beat)
* EBITDA: $1.18 billion

Key Metrics:

* Same-Store Sales: 5.8% YoY growth
* Free Cash Flow Margin: 13.6%
* Market Capitalization: $10.3 billion

Industry Analysis:

The outpatient and specialty care industry benefits from:

* Cost-effective alternatives to inpatient care
* Recurring revenue from chronic conditions
* Aging population and rising chronic disease prevalence
* Focus on preventive care and value-based models

Company Overview:

Encompass Health specializes in inpatient rehabilitation hospitals and home health care services. Its strong sales growth and stable revenue streams highlight its resilience in the healthcare industry.

Sales Growth:

* 5-year CAGR: 8.9%
* 2-year annualized revenue growth: 11.2%
* Quarterly revenue growth: 12.7%

Adjusted Operating Margin:

* 5-year average: 16.8%
* 2-year decline: 5.8 percentage points
* Q4 margin: 11.4%

Earnings Per Share (EPS):

* 5-year CAGR: 6.4%
* Quarterly EPS: $1.17 (beat)
* Full-year EPS guidance: $4.43 (7.1% growth)

Conclusion:

Encompass Health's Q4 results and full-year guidance indicate continued growth and profitability. Despite margin compression in Q4, the company's long-term fundamentals remain strong. Investors should consider the full research report for a comprehensive analysis before making investment decisions.