NYSE$EHC

Encompass Health Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Encompass Health reported strong financial results and strategic progress for Q4 2019.

Encompass Health Corporation reported its Q4 2019 results, showing revenue growth driven by volume and pricing in the inpatient rehabilitation segment, and volume growth in the home health and hospice segment. The company had net operating revenues of $1,184.4 million and adjusted earnings per share of $0.85.

  • Encompass Health had a strong year with solid financial results and significant progress on strategic initiatives.
  • Revenue growth was driven by volume and pricing growth in the inpatient rehabilitation segment and volume growth in the home health and hospice segment.
  • The increase in income from continuing operations attributable to Encompass Health per diluted share in 2019 resulted primarily from increased revenue and a lower effective tax rate, as well as the accrual for the settlement with the United States Department of Justice (“DOJ Settlement”) in the fourth quarter of 2018.
  • The Company is confirming the following guidance ranges for full-year 2020: Net operating revenues of $4,850 to $4,950 million, Adjusted EBITDA of $935 to $965 million, and Adjusted earnings per share from continuing operations attributable to Encompass Health of $3.50 to $3.72.

Headline financials

Total Revenue

$1.18B

Previous: $1.1B+8.0%
EPS (adj)

$0.85

Previous: $0.80+6.2%
Discharges

47.9K

Previous: 45.5K+5.2%
Net patient revenue per discharge

$18.2K

Previous: $18.1K+0.9%
Capital Expenditures

$113M

Previous: $83M+35.5%
Free Cash Flow

$137M

Previous: $95.4M+43.5%
Net Income

$90.2M

Previous: $28.1M+221.0%
Operating Income

$118M

Previous: $163M-27.8%
Gross Profit

$1.14B

Previous: $1.06B+8.2%
Cash & Equivalents

$94.8M

Previous: $69.2M+37.0%
Total Assets

$6.08B

Previous: $5.18B+17.5%
Stock-Based Comp

$27.4M

Previous: $20.3M+35.0%

Revenue & EPS history

Encompass Health · Revenue · Quarterly

$1.18B

Q4 2019+8%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The Company is confirming the following guidance ranges for full-year 2020: Net operating revenues of $4,850 to $4,950 million, Adjusted EBITDA of $935 to $965 million, and Adjusted earnings per share from continuing operations attributable to Encompass Health of $3.50 to $3.72.

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 Q4 2019

Historical avgQ4 2019

+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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