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Dec 31, 2024
Encompass Health Q4 2024 Earnings Report
Key Takeaways
Encompass Health reported strong Q4 2024 results, driven by a 12.7% increase in revenue and a 13.6% rise in Adjusted EBITDA. The company's discharge growth of 7.8% was a key driver of revenue expansion. Net income also saw a significant rise compared to the prior year.
Encompass Health
Encompass Health
Forward Guidance
Encompass Health expects continued revenue and earnings growth in 2025, driven by capacity expansion and increased patient volumes.
Positive Outlook
- Revenue guidance between $5.8 billion and $5.9 billion.
- Adjusted EBITDA projected to range from $1.16 billion to $1.2 billion.
- Earnings per share expected to be between $4.67 and $4.96.
- Continued expansion with new hospital additions.
- Strong operational execution and patient demand.
Challenges Ahead
- Higher cash tax payments expected.
- Labor and wage inflation could impact margins.
- Regulatory uncertainties in healthcare reimbursement.
- Capital expenditure requirements for hospital expansions.
- Potential macroeconomic headwinds affecting patient volumes.