NYSE$EHC

Encompass Health Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Encompass Health reported encouraging first quarter performance driven by promising volume trends contributing to solid revenue and EBITDA growth, and increased full-year 2021 guidance to reflect strong performance and the extension of the suspension of sequestration.

Encompass Health Corporation reported its Q1 2021 results with revenue growth resulting from favorable pricing partially offset by decreased volumes in both segments. The company is increasing its 2021 guidance to reflect its strong performance and the extension of the suspension of sequestration.

  • Revenue growth resulted from favorable pricing partially offset by decreased volumes in both segments.
  • The increase in income from continuing operations attributable to Encompass Health per diluted share and adjusted earnings per share in 2021 primarily resulted from revenue growth and decreased stock-based compensation.
  • The increase in full-year cash flows provided by operating activities and adjusted free cash flow primarily resulted from revenue growth and the timing of maintenance capital expenditures in 2021.
  • Total starts of care were up 0.6% due to increases in recertifications and non-episodic admissions.

Headline financials

Total Revenue

$1.23B

Previous: $1.18B+4.1%
EPS (adj)

$1.05

Previous: $0.87+20.7%
Discharges

47.2K

Previous: 47.8K-1.2%
Net patient revenue per discharge

$20K

Previous: $18.6K+7.1%
Capital Expenditures

-$98.8M

Previous: -$83.5M-18.3%
Free Cash Flow

$8.5M

Previous: $3.5M+142.9%
Net Income

$107M

Previous: $87M+23.3%
Operating Income

-$201M

Previous: -$192M-4.4%
Gross Profit

$1.18B

Previous: $1.14B+3.7%
Cash & Equivalents

$224M

Previous: $105M+113.4%
Total Assets

$6.54B

Previous: $6.14B+6.6%
Stock-Based Comp

$2.8M

Previous: $7.1M-60.6%

Revenue & EPS history

Encompass Health · Revenue · Quarterly

$1.23B

Q1 2021+4.1%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The Company increased its full-year guidance to reflect its first quarter results and the extension of the suspension of sequestration.

Tailwinds

  • Net operating revenues: $5,060 to $5,230 million
  • Adjusted EBITDA: $1,000 to $1,030 million
  • Adjusted earnings per share from continuing operations attributable to Encompass Health: $3.94 to $4.16
  • Interest expense and amortization of debt discounts and fees - estimate of $164 million to $174 million
  • Amortization of debt-related items - approximately $9 million

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 2021

Historical avgQ1 2021

+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%

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