Enhabit (EHAB) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Individual inves ...

Core Insights - The management's discussion during the earnings call will significantly influence the sustainability of immediate price changes and future earnings expectations [1] - A positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a solid Zacks Rank [8] Earnings Estimates - The consensus EPS estimate for the upcoming quarter has remained unchanged over the last 30 days, indicating a stable reassessment by covering analysts [2] - Enhabit is expected to report earnings of $0.06 per share, reflecting a year-over-year increase of +50% [23] - The Most Accurate Estimate for Enhabit is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +63.64% [15] Revenue Expectations - Revenues for Enhabit are projected to be $265.99 million, which is an increase of 1.4% from the same quarter last year [18] Earnings Surprise History - Over the last four quarters, Enhabit has beaten consensus EPS estimates two times, indicating a mixed performance history [10] - The upcoming earnings report on August 6, 2024, could significantly impact the stock price depending on whether the results meet or exceed expectations [17] Investment Considerations - Betting on stocks expected to beat earnings expectations can increase the odds of success, making it essential to check a company's Earnings ESP and Zacks Rank before quarterly releases [5] - Enhabit is viewed as a compelling earnings-beat candidate, but investors should consider other factors before making investment decisions [11]

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. This provider of home health and hospice services h ...

Financial Performance - For the three months ended March 31, 2024, consolidated net service revenue was $262.4 million, a decrease of 1.0% compared to $265.1 million in the same period of 2023[86]. - Net income attributable to Enhabit, Inc. for the three months ended March 31, 2024, was $0.2 million, a decline of 92.6% from $2.7 million in the same period of 2023[86]. - Adjusted EBITDA for the three months ended March 31, 2024, remained stable at $25.3 million, unchanged from the same period in 2023[95]. - Home health net service revenue decreased by 1.2% to $213.2 million for the three months ended March 31, 2024, compared to $215.8 million in 2023[101]. - Hospice net service revenue slightly decreased by 0.2% to $49.2 million, with general and administrative expenses reduced by 3.7%[110]. Revenue Breakdown - The home health segment net service revenue was $213.2 million, accounting for 81.2% of consolidated revenue, while the hospice segment net service revenue was $49.2 million, representing 18.8% of consolidated revenue[97]. - Medicare admissions fell by 11.4% to 25,944, while non-Medicare admissions increased by 25.2% to 30,881 during the same period[101]. - The shift to more non-Medicare admissions in home health contributed to the decrease in net service revenue[87]. Expenses and Costs - Interest expense increased to $11.1 million for the three months ended March 31, 2024, compared to $9.5 million in the same period of 2023, reflecting higher interest rates and increased leverage[90]. - The effective income tax rate for the three months ended March 31, 2024, was 50.0%, significantly higher than 31.9% for the same period in 2023[91]. - Cost of service as a percentage of net service revenue increased to 51.5% in Q1 2024 from 50.1% in Q1 2023[105]. - Home health segment adjusted EBITDA decreased by 2.5% to $43.2 million, primarily due to lower net service revenue and increased cost of service[107]. Cash Flow and Capital Expenditures - The company had $36.5 million in cash and cash equivalents as of March 31, 2024, up from $27.4 million at the end of 2023[117]. - Net cash provided by operating activities decreased to $17.3 million for the three months ended March 31, 2024, compared to $29.6 million in 2023[118]. - Capital expenditures for the three months ended March 31, 2024, were $1.8 million, compared to $0.6 million in the same period of 2023[124]. - The company expects to spend approximately $5 million to $10 million on capital expenditures during 2024[124]. Debt and Obligations - Total long-term debt obligations amounted to $365.0 million, with $180.0 million under the revolving credit facility as of March 31, 2024[122]. - Long-term debt, including interest, totals $139.7 million, with $43.0 million due in the current period[123]. - The company has $180.0 million in revolving credit facility obligations, all classified as long-term[122]. - Operating lease obligations total $70.4 million, with $10.8 million due in the current period[122]. - Total consolidated contractual obligations as of March 31, 2024, amounted to $772.7 million, with long-term debt obligations excluding revolving credit facility at $365.0 million[122]. Strategic Outlook - The proposed 2025 Hospice Rule by CMS suggests a 2.6% estimated net increase in payments compared to 2024, potentially resulting in a net increase of approximately 3.2% in Medicare payment rates for the company[79]. - The company remains committed to enhancing shareholder value and will evaluate all opportunities to do so following the conclusion of its strategic alternatives review[78]. - There have been no material changes to critical accounting estimates from those disclosed in the Form 10-K[125].

Enhabit (EHAB) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 40%. A quarter ago, it was expected that this provider of home health and hospice services would post earnings of $0.02 per share when it actually produced earnings of $0.06, delivering a surprise of 200%.Over the last fou ...

Financial Performance - Net service revenue for Q1 2024 was $262.4 million, a decrease of 1.0% compared to $265.1 million in Q1 2023[5]. - Adjusted EBITDA remained stable at $25.3 million for both Q1 2024 and Q1 2023, with an Adjusted EBITDA margin of 9.6%[5][6]. - The company reported a net income attributable to Enhabit, Inc. of $0.2 million, a significant decrease of 92.6% from $2.7 million in Q1 2023[5][6]. - Net income for Q1 2024 was $0.9 million, a decrease of 71.9% from $3.2 million in Q1 2023[24]. - Adjusted earnings per share (EPS) for Q1 2024 was $0.07, down from $0.09 in Q1 2023, representing a decline of 22.2%[25]. - Net cash provided by operating activities was $17.3 million in Q1 2024, a decrease of 41.0% from $29.6 million in Q1 2023[24]. - Adjusted free cash flow for Q1 2024 was $18.6 million, down from $28.3 million in Q1 2023, representing a decrease of about 34.0%[35]. - Gross margin as a percentage of revenue was 48.9% in Q1 2024, compared to 50.0% in Q1 2023, indicating a decline of 1.1 percentage points[37]. - Adjusted EBITDA margin improved slightly to 9.6% in Q1 2024 from 9.5% in Q1 2023[37]. Operational Highlights - Non-Medicare admissions increased by 25.2%, contributing to a total admission growth of 5.3% year over year[5][7]. - The company added 151 net new full-time nursing hires in Q1 2024, enhancing operational capacity[5]. - The 30-day hospitalization readmission rate in home health is 20.5% better than the national average, indicating improved patient outcomes[5]. - Two new hospice de novo locations were opened in Texas in March 2024, supporting market expansion efforts[5]. Cost Management - General and administrative expenses decreased by 4.2% year over year, reflecting improved cost control measures[5][6]. - The company reported unusual or nonrecurring items totaling $3.7 million in Q1 2024, compared to $2.3 million in Q1 2023, reflecting increased strategic review costs[33]. - Unusual or nonrecurring items in Q1 2024 amounted to $3.7 million, compared to $2.3 million in Q1 2023, reflecting an increase of approximately 60.9%[34]. - Capital expenditures for maintenance increased to $1.8 million in Q1 2024 from $0.6 million in Q1 2023, a rise of 200%[35]. Guidance and Future Outlook - The company reaffirmed its full-year 2024 guidance for net service revenue between $1,076 million and $1,102 million[13]. - Adjusted EPS guidance for 2024 is set between $0.12 and $0.43[13]. - Future growth opportunities may be influenced by regulatory developments and changes in reimbursement rates, as indicated in the forward-looking statements[39]. - The company aims to successfully integrate technology in operations and complete acquisitions to enhance market presence[39]. - The management emphasizes the importance of attracting and retaining key personnel to support strategic plans and operational efficiency[39]. Balance Sheet and Assets - Total assets increased to $1,445.2 million as of March 31, 2024, compared to $1,433.6 million at December 31, 2023, reflecting a growth of 0.8%[22]. - Total current liabilities increased to $150.5 million as of March 31, 2024, up from $137.7 million at December 31, 2023, marking an increase of 9.9%[22]. - Total stockholders' equity increased to $700.0 million as of March 31, 2024, compared to $696.7 million at December 31, 2023, an increase of 0.5%[22]. - Cash, cash equivalents, and restricted cash at the end of Q1 2024 totaled $39.4 million, slightly down from $39.6 million at the end of Q1 2023[24]. - Principal payments on debt in Q1 2024 were $5.0 million, consistent with Q1 2023[24].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ________ Commission file number 001-41406 Enhabit, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Enhabit, Inc. (NYSE:EHAB) Q4 2023 Results Conference Call March 7, 2024 10:00 AM ET Company Participants Barb Jacobsmeyer - President, CEO Crissy Carlisle - CFO Conference Call Participants Brian Tanquilut - Jefferies Jason Cassorla - Citi Joanna Gajuk - Bank of America Enjia Cao - UBS Ryan Langston - TD Cowen Operator Good morning, everyone. Welcome to Enhabit Home Health and Hospice's Fourth Quarter 2023 Earnings Conference Call. Today's conference call is being recorded. If you have any objections, you ...

Exhibit 99.1 Enhabit Reports Fourth Quarter Results and Issues Full-Year 2024 Guidance Company to host a conference call tomorrow, March 7, 2024, at 10 A.M. EST DALLAS, TX – March 6, 2024 – Enhabit, Inc. (NYSE: EHAB), a leading home health and hospice care provider, today reported its results of operations for the fourth quarter ended December 31, 2023. "Persistent focus on our Company's strategies drove our positive fourth quarter results," said Enhabit's President and Chief Executive Officer Barb Jacobsme ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-41406 ___________________ Enhabit, Inc. (Exact name of registrant as specified in its charter) | 47-2409192 | | --- | | Delaware | (State or other j ...