Sep 30, 2024

Encompass Health Q3 2024 Earnings Report

Encompass Health's third quarter performance was strong, with revenue and Adjusted EBITDA increasing.

Key Takeaways

Encompass Health Corporation reported strong results for the third quarter ended September 30, 2024. Revenue increased by 11.9% and Adjusted EBITDA increased by 13.4%. The company also increased its full-year guidance.

Revenue growth of 11.9% resulted primarily from discharge growth of 8.8%, including same-store growth of 6.8%. Net revenue per discharge grew 2.5%.

Cash flows provided by operating activities increased 24.4% to $267.8 million, primarily due to an increase in net income partly offset by higher cash tax payments.

Adjusted EBITDA increased 13.4%, primarily from increased revenue.

The Company increased its full-year guidance.

Total Revenue
$1.35B
Previous year: $1.21B
+11.9%
EPS
$1.03
Previous year: $0.86
+19.8%
Net patient revenue per discharge
$21K
Previous year: $20.5K
+2.5%
Discharges
62.72K
Previous year: 57.67K
+8.8%
Gross Profit
$402M
Previous year: $1.15B
-65.1%
Cash and Equivalents
$148M
Previous year: $99.7M
+48.2%
Free Cash Flow
$190M
Previous year: $68.5M
+176.9%
Total Assets
$6.46B
Previous year: $5.96B
+8.3%

Encompass Health

Encompass Health

Forward Guidance

The Company increased its full-year guidance as follows:

Positive Outlook

  • Net operating revenue: $5,325 to $5,375 million
  • Adjusted EBITDA: $1,070 to $1,090 million
  • Adjusted earnings per share from continuing operations attributable to Encompass Health: $4.19 to $4.33