Core Insights - Encompass Health Corporation (EHC) demonstrates that strategic expansion and operational discipline can yield significant results, driven by an aging population and increased demand for inpatient rehabilitation [1] Group 1: Company Performance - Encompass Health is expanding its hospital footprint and increasing bed capacity to accommodate rising patient volumes, with occupancy rates projected to rise from 72.1% in 2023 to 77.7% in the first half of 2025 [2][10] - Patient discharges have shown consistent growth, increasing by 8.7% in 2023, 8.3% in 2024, and 6.8% in the first half of 2025 [2][10] - Revenue per visit has surged by 27%, 40.8%, and 68% over the same periods, contributing to lower double-digit growth in net operating revenues [3] Group 2: Operational Efficiency - Investments in technology, improved staffing strategies, and stringent cost controls have led to a rise in adjusted net margin from 7.7% in 2023 to 9.7% in the first half of 2025 [4][10] - The company is well-positioned to maintain growth momentum, with the Zacks Consensus Estimate indicating an 18.3% year-over-year increase in earnings for 2025 [5] Group 3: Earnings Estimates - The Zacks Consensus Estimate for the current quarter (September 2025) is $1.20, with an expected year-over-year growth of 16.5% [6] - For the next quarter (December 2025), the estimate is $1.29, reflecting a 10.26% growth [6] - The current year estimate for 2025 stands at $5.24, with an 18.28% increase anticipated compared to the previous year [6] Group 4: Industry Comparison - Peers such as Universal Health Services, Inc. (UHS) and Tenet Healthcare Corporation (THC) are also experiencing revenue growth, with UHS revenues increasing by 6.6% in 2023 and 10.8% in 2024 [7][8] - Tenet Healthcare's revenues rose by 7.2% in 2023 and 0.6% in 2024, with a projected 2.4% increase in 2025 [8] Group 5: Stock Performance and Valuation - Encompass Health's shares have increased by 36.4% year-to-date, outperforming the industry growth of 10.1% [9] - The company trades at a forward price-to-earnings ratio of 22.55X, above the industry average of 19.59X, and holds a Value Score of B [12]

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims for investors of Encompass Health Corporation over possible violations of federal securities laws, particularly regarding alleged misrepresentations or omissions by the company and its executives [1] Group 1: Company Background - Encompass Health accounts for approximately one in seven rehabilitation facilities nationally, owning 34 of the 41 inpatient rehab facilities rated by Medicare as having statistically significantly worse rates of potentially preventable readmissions for discharged patients [3] - The company also owns 28 of the 87 rehab facilities that had worse rates of potentially preventable readmissions to general hospitals during patient stays, with 65 of these being for-profit [3] Group 2: Market Reaction - Following the publication of the New York Times article detailing the company's performance issues, the stock price of Encompass Health fell by more than 10% [3]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Encompass Health Corporation due to allegations of materially misleading business information [1] Group 1: Investigation and Allegations - The investigation is prompted by an article published by The New York Times, which reported serious incidents of patient harm and below-average performance on key safety measures at Encompass Health's rehab hospitals [3] - Following the publication of the article, Encompass Health's stock price dropped by 10.3% on July 15, 2025 [3] Group 2: Class Action Details - Investors who purchased Encompass Health securities may be entitled to compensation through a class action lawsuit, with no out-of-pocket fees due to a contingency fee arrangement [2] - Interested investors can join the class action by submitting a form or contacting the Rosen Law Firm directly [2] Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field [4] - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4]

Core Viewpoint - Encompass Health has shown strong performance in its recent earnings report, with significant growth in earnings and revenues, leading to an optimistic outlook for the company moving forward [3][10][11]. Financial Performance - Encompass Health reported Q2 2025 adjusted EPS of $1.40, exceeding estimates by 16.7% and reflecting a 26.1% year-over-year increase [3][4]. - Net operating revenues for Q2 2025 rose 12% year-over-year to $1.5 billion, surpassing consensus estimates by 2.3% [3][4]. - Net income increased by 26.2% year-over-year to $184.9 million, while adjusted EBITDA improved 17.4% year-over-year to $318.6 million, exceeding estimates [6][8]. Operational Highlights - The company added 26 beds to existing hospitals and opened a new de novo hospital during the quarter [4][6]. - Net patient revenue per discharge grew 4.2% year-over-year to $21.7 billion, with total discharges improving by 7.2% year-over-year to 65,237 [5][6]. Financial Position - As of June 30, 2025, Encompass Health had cash and cash equivalents of $99.1 million, up from $85.4 million at the end of 2024 [7]. - Total assets increased by 3.8% to $6.8 billion, while long-term debt decreased by 1.6% to $2.3 billion [7][8]. Capital Deployment - The company repurchased shares worth $24.7 million in Q2 2025 and has approximately $433 million remaining under its buyback authorization [9]. - A quarterly cash dividend of 17 cents per share was paid, which was increased to 19 cents per share in July [9]. Future Outlook - Encompass Health raised its 2025 revenue forecast to between $5.88 billion and $5.98 billion, indicating a 10.4% increase from 2024 [10]. - Adjusted EPS for 2025 is now expected to be between $5.12 and $5.34, suggesting an 18.1% growth from the previous year [11]. - The company aims to open seven de novo hospitals and add 340 beds in 2025, with a long-term growth target of 6-8% CAGR in discharges from 2023 to 2027 [12][13]. Market Position - Encompass Health is positioned favorably within the Zacks Medical - Outpatient and Home Healthcare industry, with a Zacks Rank 2 (Buy) indicating expected above-average returns in the coming months [16][17].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Encompass Health Corporation due to allegations of materially misleading business information [1] Group 1: Legal Action and Investor Rights - Shareholders of Encompass Health may be entitled to compensation through a class action without any out-of-pocket fees, as the Rosen Law Firm prepares to seek recovery of investor losses [2] - Investors can join the prospective class action by submitting a form or contacting the law firm directly [2] Group 2: Company Performance and Market Reaction - A New York Times article highlighted serious incidents of patient harm and below-average performance on key safety measures at Encompass Health, leading to a 10.3% drop in the company's stock price on July 15, 2025 [3] Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field, including being ranked No. 1 for securities class action settlements in 2017 [4] - The firm has recovered hundreds of millions of dollars for investors, with over $438 million secured in 2019 alone [4]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Encompass Health Corporation due to allegations of materially misleading business information [1] Group 1: Investigation and Allegations - The investigation is prompted by an article from The New York Times highlighting serious incidents of patient harm and below-average performance on key safety measures at Encompass Health's rehab hospitals [3] - Following the publication of the article, Encompass Health's stock price dropped by 10.3% on July 15, 2025 [3] Group 2: Class Action Details - Investors who purchased Encompass Health securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2] - The Rosen Law Firm is preparing a class action to seek recovery of investor losses [2] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4] - The firm has been ranked in the top 4 for securities class action settlements since 2013 and recovered hundreds of millions of dollars for investors, including over $438 million in 2019 [4]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Encompass Health Corporation due to allegations of materially misleading business information issued to the public [1] Group 1: Investigation and Allegations - The investigation is prompted by an article published by The New York Times on July 15, 2025, which highlighted serious incidents of patient harm and below-average performance on key safety measures at Encompass Health's rehab hospitals [4] - Following the publication of the article, Encompass Health's stock price experienced a significant decline of 10.3% on the same day [4] Group 2: Class Action and Compensation - Shareholders who purchased Encompass Health securities may be entitled to compensation through a class action lawsuit, with no out-of-pocket fees or costs due to a contingency fee arrangement [2] - Interested parties can join the prospective class action by submitting a form or contacting the Rosen Law Firm directly [3] Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time and consistently ranking in the top 4 for securities class action settlements since 2013 [5] - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering significant amounts for its clients [5]

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices by Encompass Health Corporation and its officers or directors [1] Group 1: Allegations and Impact - A New York Times article published on July 15, 2025, alleged that Encompass's for-profit hospitals perform below average on key safety measures, including high rates of potentially preventable readmissions [3] - The article specifically mentioned that Encompass owns 34 facilities rated by Medicare as having statistically significantly worse rates of potentially preventable readmissions [3] - Following the publication of the article, Encompass's stock price dropped by $12.39 per share, or 10.35%, closing at $107.28 per share on the same day [4] Group 2: Legal Context - Pomerantz LLP is recognized as a leading firm in corporate, securities, and antitrust class litigation, with a history of fighting for victims of securities fraud and corporate misconduct [5] - The firm has a track record of recovering multimillion-dollar damages for class members [5]

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices by Encompass Health Corporation and its officers or directors [1] Group 1: Allegations and Impact - A New York Times article published on July 15, 2025, alleged that Encompass's for-profit hospitals perform below average on key safety measures, including having statistically significantly worse rates of potentially preventable readmissions at 34 facilities [3] - The article highlighted alarming mistakes that led to patient fatalities in Encompass-owned facilities [3] - Following the publication of the article, Encompass's stock price dropped by $12.39 per share, or 10.35%, closing at $107.28 per share on the same day [4] Group 2: Legal Context - Pomerantz LLP is recognized as a leading firm in corporate, securities, and antitrust class litigation, with a history of fighting for victims of securities fraud and corporate misconduct [5]

Core Viewpoint - Encompass Health Corp. and BSA Health System have announced a joint venture to establish a 50-bed inpatient rehabilitation hospital in Amarillo, Texas, aimed at enhancing rehabilitation care in the community [1][4]. Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with 169 hospitals across 38 states and Puerto Rico, providing high-quality rehabilitative care [5]. - BSA Health System is the largest healthcare employer in the Texas Panhandle, operating a comprehensive healthcare system that includes a flagship 445-bed hospital and various clinics [7]. Hospital Details - The new hospital will focus on patients recovering from serious conditions such as strokes, brain injuries, and complex orthopedic issues, offering 24-hour nursing care and various therapies [2][3]. - Facilities will include private patient rooms, a therapy gym with advanced technologies, an activities of daily living suite, and an in-house dialysis suite [3]. Strategic Importance - The partnership is expected to enhance acute care capacity in Amarillo and improve the level of rehabilitation care available to the community [4]. - The hospital is projected to open in late 2025 and will be part of Encompass Health's ongoing expansion efforts in Texas [4].