NYSE$EHC

Encompass Health Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Encompass Health's Q3 2022 performance reflected strong demand for inpatient rehabilitation services, discharge growth, and progress in reducing contract labor, but was impacted by elevated staffing costs, leading to revised 2022 guidance.

Encompass Health Corporation reported its Q3 2022 results, demonstrating strong demand for inpatient rehabilitation services with a 7.5% increase in total discharges. However, elevated staffing costs impacted profitability, leading to a revision of the company's 2022 guidance.

  • Third quarter discharge growth was 7.5%, inclusive of 4.1% same-store growth.
  • The company made continued progress on reducing contract labor through hiring and retention initiatives.
  • Elevated staffing costs again impacted profitability.
  • The company has revised its 2022 guidance.

Headline financials

Total Revenue

$1.09B

Previous: $1.28B-15.2%
EPS (adj)

$0.67

Previous: $1.03-35.0%
Discharges

53.7K

Previous: 50.0K+7.5%
Net patient revenue per discharge

$19.8K

Previous: $19.7K+0.7%
Capital Expenditures

-$375M

Previous: -$336M-11.5%
Free Cash Flow

-$330M

Previous: -$236M-39.4%
Net Income

$45.4M

Previous: $100M-54.6%
Operating Income

-$226M

Previous: -$217M-4.2%
Gross Profit

-$16.5M

Previous: $1.23B-101.3%
Cash & Equivalents

$59.8M

Previous: $94.8M-36.9%
Total Assets

$5.48B

Previous: $6.72B-18.5%
Stock-Based Comp

$4.8M

Previous: $6.9M-30.4%

Revenue & EPS history

Encompass Health · Revenue · Quarterly

$1.09B

Q3 2022-15.2%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

The Company is revising its guidance for full-year 2022. Net operating revenue is expected to be $4,320 to $4,350 million. Adjusted EBITDA is expected to be $800 to $820 million. Adjusted earnings per share from continuing operations attributable to Encompass Health is expected to be $2.71 to $2.86.

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 Q3 2022

Historical avgQ3 2022

+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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