BIRMINGHAM, Ala. - Encompass Health Corporation (NYSE:EHC) saw its shares jump over 5% in after-hours trading Monday after the inpatient rehabilitation hospital operator reported third quarter results that beat analyst expectations and raised its full-year outlook.
The company posted adjusted earnings per share of $1.03 for Q3, surpassing the consensus estimate of $0.94. Revenue came in at $1.35 billion, ahead of the $1.33 billion analysts were expecting and up 11.9% year-over-year.
Encompass Health cited strong discharge growth of 8.8%, including same-store growth of 6.8%, as a key driver of the revenue increase. Net revenue per discharge also grew 2.5% compared to the prior year period.
"We are very pleased with our third quarter performance as strong discharge growth facilitated an increase of 11.9% in revenue and 13.4% in Adjusted EBITDA," said President and CEO Mark Tarr in a statement.
Looking ahead, the company raised its full-year 2024 guidance. Encompass Health now expects adjusted EPS of $4.19 to $4.33, up from its previous outlook of $3.97 to $4.22 and above the $4.19 consensus. It also boosted its revenue forecast to a range of $5.325 billion to $5.375 billion, compared to $5.275 billion to $5.350 billion previously.
The improved outlook suggests continued momentum in patient volumes and pricing power for Encompass Health's inpatient rehabilitation services.
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