NYSE$EHC

Encompass Health Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Encompass Health's Q1 2020 results were impacted by COVID-19 pandemic, with revenue growth driven by volume and pricing in inpatient rehabilitation and volume in home health and hospice.

Encompass Health reported its Q1 2020 results, which were impacted by lower volumes and higher operating expenses related to the COVID-19 pandemic starting in March, although operating performance was strong through February. The company withdrew its 2020 guidance due to rapidly changing operating conditions.

  • Revenue growth was driven by volume and pricing growth in the inpatient rehabilitation segment and volume growth in the home health and hospice segment.
  • Cash flows provided by operating activities and adjusted free cash flow decreased primarily due to a decrease in earnings and an increase in working capital.
  • The company's executive team voluntarily reduced their base compensation for six months.
  • The company secured secondary sources of PPE and other medical supplies, aligned staffing with patient demand, and amended its senior credit facility to provide covenant relief.

Headline financials

Total Revenue

$1.18B

Previous: $1.12B+5.2%
EPS (adj)

$0.87

Previous: $1.04-16.3%
Discharges

47.8K

Previous: 45.6K+4.7%
Net patient revenue per discharge

$18.6K

Previous: $18.6K+0.3%
Capital Expenditures

-$83.5M

Previous: -$72.3M-15.5%
Free Cash Flow

$3.5M

Previous: $30M-88.3%
Net Income

$87M

Previous: $102M-15.0%
Operating Income

-$192M

Previous: -$215M+10.3%
Gross Profit

$1.14B

Previous: $800K+141937.5%
Cash & Equivalents

$105M

Previous: $56.1M+87.0%
Total Assets

$6.14B

Previous: $5.58B+9.9%
Stock-Based Comp

$7.1M

Previous: $19.4M-63.4%

Revenue & EPS history

Encompass Health · Revenue · Quarterly

$1.18B

Q1 2020+5.2%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Given the rapidly changing operating conditions related to the COVID-19 pandemic, the Company cannot accurately estimate the effects it may have on its full-year 2020 financial results. As a result, the Company withdrew its 2020 guidance and five-year growth targets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.2%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.5%

Avg return

30 days after

64%

42 / 66 earnings

Positive

+11.8%

Q1 2025

Best reaction

-9.0%

Q1 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%+5.0%+6.0%
Q4 2025+5.9%+13.9%+7.4%
Q3 2025-6.9%-6.8%-7.5%
Q1 2025+11.8%+15.4%+17.2%
Q4 2024+1.3%-0.6%+0.7%
Q3 2024+7.0%+5.8%+10.0%
Q2 2024-8.7%-7.5%+1.0%
Q1 2024+0.3%+1.4%+2.5%
Q4 2023+1.7%+1.9%+5.9%
Q3 2023-1.9%+0.9%+6.7%
Q2 2023+5.0%+6.4%+7.6%
Q1 2023+0.7%-0.6%-5.9%
Q4 2022+1.6%+3.1%-9.1%
Q3 2022+6.4%+11.1%+16.6%
Q2 2022+0.6%+4.5%-4.0%
Q1 2022+2.6%+2.5%-2.0%
Q4 2021+1.5%-2.9%+8.8%
Q3 2021-6.0%-5.8%-9.8%
Q2 2021+0.7%+3.5%-4.1%
Q1 2021-1.6%-2.7%-2.5%
Q4 2020-3.9%-6.2%-6.1%
Q3 2020-2.6%-3.0%+25.9%
Q2 2020+4.5%+3.1%-6.4%
Q1 2020-1.1%-7.1%+6.4%
Q4 2019+0.4%+3.1%-2.6%
Q3 2019-5.8%+2.0%+5.5%
Q2 2019-4.0%-7.4%-12.6%
Q1 2019+5.3%+3.6%-4.6%
Q4 2018-4.4%-3.5%-13.3%
Q3 2018-5.7%-4.0%+1.4%
Q2 2018+8.8%+5.9%+17.4%
Q1 2018+7.2%+7.3%+10.3%
Q4 2017+3.0%+3.9%+7.7%
Q3 2017+1.8%+2.0%+8.7%
Q2 2017+1.9%-0.2%+3.6%
Q1 2017+7.9%+10.0%+6.3%
Q4 2016+0.1%+0.5%-1.9%
Q3 2016+1.8%+0.7%+5.6%
Q2 2016+6.7%+3.1%-0.3%
Q1 2016+10.9%
Q4 2015+9.2%
Q3 2015-0.3%
Q2 2015-2.9%
Q1 2015-9.0%
Q4 2014-4.7%
Q3 2014-3.0%
Q2 2014+7.4%
Q1 2014-0.4%
Q4 2013-2.8%
Q3 2013+0.6%
Q2 2013+4.7%
Q1 2013+3.1%
Q4 2012+7.2%
Q3 2012+2.5%
Q2 2012-3.7%
Q1 2012+9.2%
Q4 2010+3.9%
Q4 2011+3.9%
Q3 2011-1.0%
Q2 2011-9.0%
Q1 2010+0.4%
Q1 2011+2.5%
Q4 2008+7.8%
Q3 2010+2.2%
Q2 2010-1.0%
Q4 2009-1.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro