Encompass Health (EHC) Beats Q4 Earnings and Revenue Estimates

Core Insights - Encompass Health (EHC) reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of$ 1.02 per share, and showing an increase from $0.95 per share a year ago, resulting in an earnings surprise of 14.71% [1] - The company achieved revenues of$ 1.41 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.05%, compared to $1.25 billion in the same quarter last year [2] - Encompass Health shares have increased approximately 10.7% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is$ 1.19 on revenues of $1.43 billion, and for the current fiscal year, it is$ 4.76 on revenues of $5.82 billion [7] - The estimate revisions trend for Encompass Health is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which Encompass Health belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]