NYSE$EHC

Encompass Health Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Encompass Health reported a strong finish to 2023 with significant growth in net operating revenue and Adjusted EBITDA.

Encompass Health reported a strong fourth quarter with a 9.6% increase in net operating revenue and Adjusted EBITDA. The company's discharge growth and net revenue per discharge contributed to the overall revenue increase. Encompass Health provided guidance for 2024, projecting net operating revenue between $5.2 billion and $5.3 billion and adjusted earnings per share between $3.77 and $4.06.

  • Net operating revenue growth of 9.6% resulted primarily from discharge growth of 8.3%, including same-store growth of 5.3%.
  • Net revenue per discharge grew 0.9%.
  • Cash flows provided by operating activities increased 16.7% over the prior year to $201.0 million, due to a favorable change in working capital and an increase in net income.
  • The 9.6% increase in Adjusted EBITDA resulted primarily from higher revenue.

Headline financials

Total Revenue

$1.25B

Previous: $1.14B+9.7%
EPS (adj)

$0.95

Previous: $0.88+8.0%
Discharges

59.2K

Previous: 54.7K+8.3%
Net patient revenue per discharge

$20.5K

Previous: $20.3K+0.9%
Capital Expenditures

-$223M

Previous: $190M-217.2%
Net Income

$119M

Previous: $118M+1.4%
Operating Income

$165M

Previous: $151M+9.2%
Gross Profit

$243M

Previous: $1.08B-77.6%
Stock-Based Comp

$13.4M

Previous: $8.1M+65.4%

Revenue & EPS history

Encompass Health · Revenue · Quarterly

$1.25B

Q4 2023+9.7%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

The Company provided the following guidance for 2024. Net operating revenue $5,200 to $5,300 millions, Adjusted EBITDA $1,015 to $1,055 millions, Adjusted earnings per share from continuing operations attributable to Encompass Health $3.77 to $4.06.

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 2023

Historical avgQ4 2023

+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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