Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Encompass Health (EHC) due to higher revenues, with a focus on how actual results will compare to estimates impacting stock price [1][2]. Earnings Expectations - Encompass Health is expected to report quarterly earnings of $1.20 per share, reflecting an 8.1% increase year-over-year, with revenues projected at $1.43 billion, a 9.7% rise from the previous year [3]. - The earnings report is scheduled for August 4, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Encompass Health is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.24%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Encompass Health currently holds a Zacks Rank of 2, but the negative Earnings ESP complicates predictions for beating the consensus EPS estimate [12]. Historical Performance - Encompass Health has consistently beaten consensus EPS estimates, achieving this in the last four quarters [14]. - In the last reported quarter, the company exceeded expectations by delivering earnings of $1.37 per share against an expected $1.19, resulting in a surprise of +15.13% [13]. Conclusion - While Encompass Health does not appear to be a compelling earnings-beat candidate, investors should consider various factors beyond earnings results when making investment decisions [17].
Encompass Health (EHC) Reports Next Week: Wall Street Expects Earnings Growth