Encompass Health beats Q4 adjusted profit estimates

Overview

• U.S. rehab hospital operator's Q4 revenue rose 9.9% yr/yr

• Adjusted EPS for Q4 beat analyst expectations

• Company issued 2026 guidance projecting revenue and EBITDA growth

Outlook

• Encompass Health forecasts 2026 net operating revenue of $6.365 bln to $6.465 bln

• Company expects 2026 adjusted EBITDA between $1.340 bln and $1.380 bln

• Encompass Health projects 2026 adjusted EPS of $5.81 to $6.10

Result Drivers

• CAPACITY EXPANSION - Co added 517 inpatient rehabilitation beds via eight new hospitals and expanded existing facilities

• AGING POPULATION - Rising demand for services attributed to aging U.S. population

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy."

• Wall Street's median 12-month price target for Encompass Health Corp is $140.00, about 46.4% above its February 4 closing price of $95.66

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nPn6gNctPa

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