Core Viewpoint - Encompass Health Corp. plans to construct a 50-bed freestanding inpatient rehabilitation hospital in Haslet, Texas, aimed at enhancing its presence in the state and providing high-quality rehabilitative care to patients recovering from serious illnesses and injuries [1][4]. Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with a network of 169 hospitals across 38 states and Puerto Rico [5]. - The company is recognized for its high-quality, compassionate rehabilitative care, utilizing advanced technology and innovative treatments to maximize patient recovery [5]. - Encompass Health has received accolades such as being ranked among Fortune's World's Most Admired Companies™ and Forbes' Most Trusted Companies in America [5]. Hospital Features - The new hospital will cater to patients recovering from conditions such as strokes, neurological disorders, brain injuries, spinal cord injuries, amputations, and complex orthopedic conditions [2]. - It will provide 24-hour nursing care and various therapies, including physical, occupational, and speech therapies, delivered by specialized healthcare professionals [2]. - Facilities will include private patient rooms, a therapy gym with advanced rehabilitation technologies, an activities of daily living suite, an in-house dialysis suite, a dining room, a pharmacy, and a therapy courtyard [3]. Expansion Plans - The construction of the Haslet hospital is expected to begin soon, with an anticipated opening in 2027, as part of Encompass Health's ongoing expansion strategy in Texas [4].

Financial Performance - Q2 2025 - Net operating revenue increased by 12.0% to $1,457.7 million compared to $1,301.2 million in Q2 2024[8] - Adjusted EBITDA increased by 17.2% to $318.6 million compared to $271.8 million in Q2 2024[8] - Adjusted EPS increased by 26.1% to $1.40 compared to $1.11 in Q2 2024[8] - Adjusted free cash flow increased by 30.5% to $185.9 million compared to $142.5 million in Q2 2024[8] Financial Performance - YTD Q2 2025 - Net operating revenue increased by 11.3% to $2,913.1 million compared to $2,617.2 million in YTD Q2 2024[8] - Adjusted EBITDA increased by 16.0% to $632.2 million compared to $544.8 million in YTD Q2 2024[8] - Adjusted EPS increased by 24.2% to $2.77 compared to $2.23 in YTD Q2 2024[8] - Adjusted free cash flow increased by 31.7% to $408.3 million compared to $310.1 million in YTD Q2 2024[8] Revenue Details - Inpatient revenue increased by 11.7% to $1,413.7 million in Q2 2025 compared to $1,265.5 million in Q2 2024[13] - Outpatient and other revenue increased by 23.2% to $44.0 million in Q2 2025 compared to $35.7 million in Q2 2024, including an $8.5 million increase in Medicaid supplemental payments[13] - Discharges increased by 7.2% to 65,237 in Q2 2025 compared to 60,833 in Q2 2024[13] 2025 Guidance (Updated) - Net Operating Revenue guidance increased to $5,880 to $5,980 million from the previous guidance of $5,850 to $5,925 million[22] - Adjusted EBITDA guidance increased to $1,220 to $1,250 million from the previous guidance of $1,185 to $1,220 million[22] - Adjusted earnings per share guidance increased to $5.12 to $5.34 from the previous guidance of $4.85 to $5.10[22]

Core Viewpoint - Encompass Health Corporation reported strong financial results for Q2 2025, with significant revenue growth and increased guidance for the full year, reflecting the company's operational efficiency and expansion efforts [1][3]. Financial Performance - Net operating revenue for Q2 2025 was $1,457.7 million, up from $1,301.2 million in Q2 2024, representing a growth of $156.5 million or 12.0% [2]. - Income from continuing operations attributable to Encompass Health per diluted share increased to $1.40, a rise of 23.9% from $1.13 in the same quarter last year [2]. - Adjusted earnings per share for Q2 2025 were $1.40, compared to $1.11 in Q2 2024, marking a 26.1% increase [2]. - Cash flows from operating activities rose by 24.3% to $270.2 million, primarily due to increased net income [2][9]. - Adjusted EBITDA for Q2 2025 was $318.6 million, up 17.2% from $271.8 million in Q2 2024 [2][9]. Operational Highlights - The company opened a new 60-bed hospital in Fort Myers, Florida, and added 26 beds to an existing facility, enhancing its capacity to serve patients [3]. - Total discharges increased by 7.2%, with same-store discharge growth of 4.7% [2][9]. - Net patient revenue per discharge grew by 4.2%, reaching $21,670 in Q2 2025 [2]. Updated Guidance - Encompass Health raised its full-year guidance for 2025, with updated expectations for net operating revenue between $5,880 million and $5,980 million, and adjusted EBITDA between $1,220 million and $1,250 million [3]. - Adjusted earnings per share guidance was also increased to a range of $5.12 to $5.34 [3]. 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 [6]. - The company is recognized for its high-quality rehabilitative care and has received accolades from Fortune and Forbes for its reputation [6].

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].

Core Viewpoint - Encompass Health Corp. has announced an increase in its quarterly dividend by $0.02, bringing the total to $0.19 per share, payable on October 15, 2025, to shareholders of record on October 1, 2025 [1]. Company Overview - Encompass Health is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with a network of 169 hospitals across 38 states and Puerto Rico [2]. - The company is recognized for providing high-quality rehabilitative care, utilizing advanced technology and innovative treatments to aid patient recovery from major injuries or illnesses [2]. - Encompass Health has received accolades, being ranked among Fortune's World's Most Admired Companies™ and Forbes' Most Trusted Companies in America [2].

Company Overview - Encompass Health Corporation is the largest owner and operator of inpatient rehabilitation hospitals in the U.S., with approximately 166 facilities across 38 states [3] - The company provides intensive post-acute care, including physical, occupational, respiratory, and speech therapy for patients recovering from major illnesses and injuries [3] Allegations of Wrongdoing - An article published by The New York Times on July 15, 2025, raised patient safety concerns at Encompass rehabilitation hospitals, stating that the company owns 34 of the 41 inpatient rehab facilities flagged by Medicare for having "statistically significantly worse rates of potentially preventable readmissions" [4] - Specific incidents mentioned include fatal carbon monoxide poisoning, medication errors, and bed alarm failures [4] Market Reaction - Following the publication of the article, Encompass's stock price fell by $12.39 per share, or 10.35%, closing at $107.28 per share on July 15, 2025 [5]

Core Viewpoint - Encompass Health Corp. plans to build a new 40-bed inpatient rehabilitation hospital in Cleveland, Tennessee, expanding its network of rehabilitation facilities to better serve patients in the region [1][4]. Group 1: Hospital Details - The new hospital will focus on patients recovering from serious conditions such as strokes, neurological disorders, brain injuries, spinal cord injuries, amputations, and complex orthopedic issues [2]. - It will provide comprehensive care, including 24-hour nursing, physical, occupational, and speech therapies, delivered by specialized healthcare professionals [2]. - Facilities will include private patient rooms, a therapy gym with advanced rehabilitation technologies, an activities of daily living suite, an in-house dialysis suite, a dining room, a pharmacy, and a therapy courtyard [3]. Group 2: Strategic Importance - The hospital is expected to open in 2026 and will be a satellite location of the Encompass Health Rehabilitation Hospital of Chattanooga, enhancing local access to high-quality rehabilitative care [4]. - The expansion aligns with Encompass Health's strategy to provide compassionate care close to home for patients in Cleveland and surrounding communities [4]. Group 3: 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 [5]. - The company is recognized for its high-quality rehabilitative care and innovative treatments, earning accolades such as being listed among Fortune's World's Most Admired Companies™ and Forbes' Most Trusted Companies in America [5].

Core Viewpoint - Encompass Health Corporation is under investigation for potential violations of federal securities laws and unlawful business practices following reports of safety concerns at its rehabilitation hospitals [1][3]. Group 1: Investigation Details - Kirby McInerney LLP is investigating claims against Encompass Health and its officers regarding possible violations of federal securities laws [1]. - The investigation was prompted by a New York Times article that highlighted significant safety issues at Encompass Health's hospitals, including high rates of preventable readmissions and serious operational mistakes [3]. Group 2: Financial Impact - Following the news of the investigation and safety concerns, Encompass Health's stock price fell by $12.39, approximately 10.4%, closing at $107.28 per share on July 15, 2025 [4].

Company Overview - Encompass Health Corporation is the largest owner and operator of inpatient rehabilitation hospitals in the United States [3] Investigation Details - Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving Encompass Health, focusing on whether the company and its executives made false or misleading statements or failed to disclose material information to investors [1] - The investigation is open to information from investors who may have suffered losses related to Encompass Health [2] Recent Revelations - A New York Times article published on July 15, 2025, reported that Encompass Health accounts for about one in seven rehab 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 [4] - The article also noted that Encompass Health owned 28 of the 87 rehab facilities, with 65 being for-profit, that had worse rates of potentially preventable readmissions to general hospitals during patient stays [4] - Following the publication of this article, Encompass Health's stock price fell by more than 10% [4]

Company Overview - Encompass Health Corp. is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with a national footprint of 168 hospitals across 38 states and Puerto Rico [3] - The company provides high-quality rehabilitative care for patients recovering from major injuries or illnesses, utilizing advanced technology and innovative treatments to maximize recovery [3] - Encompass Health has received recognition as one of Fortune's World's Most Admired Companies™ and Forbes' Most Trusted Companies in America [3] Upcoming Financial Reporting - Encompass Health will report its second-quarter results for the period ended June 30, 2025, after market close on August 4, 2025 [1] - An investor conference call is scheduled for 10 a.m. ET on August 5, 2025, to discuss the financial results [1] Conference Call Access - The conference call can be accessed by dialing 800-343-4849 for domestic callers and 203-518-9848 for international callers, using the conference ID EHCQ225 [2] - Participants are advised to call approximately 10 minutes before the start of the call to ensure connection [2] - A live webcast and an online replay of the conference call will be available on the company's investor website [2]