Encompass Health (EHC) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Encompass Health (EHC) driven by higher revenues, with the earnings report expected on October 28, 2024, being crucial for stock price movement based on actual results compared to estimates [1] Earnings Estimates - Encompass Health is projected to report quarterly earnings of $0.94 per share, reflecting a year-over-year increase of +9.3% [2] - Expected revenues for the quarter are $1.33 billion, which represents a 10% increase from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised 0.04% lower in the last 30 days, indicating a slight reassessment by analysts [3] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Encompass Health is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.13%, suggesting a bullish outlook from analysts [4][6] - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [5] Historical Performance - In the last reported quarter, Encompass Health exceeded the expected earnings of $1.01 per share by delivering $1.11, resulting in a surprise of +9.90% [7] - The company has beaten consensus EPS estimates in all of the last four quarters [7] Conclusion - Encompass Health is positioned as a compelling candidate for an earnings beat, with a positive Earnings ESP and a Zacks Rank of 2, although other factors should also be considered before making investment decisions [8]