The chart below shows how EHC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EHC sees a -0.99% change in stock price 10 days leading up to the earnings, and a +3.61% change 10 days following the report. On the earnings day itself, the stock moves by -0.45%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q4 Revenue Surge: Revenue increased 12.7% in Q4 2024, indicating strong financial performance.
EBITDA Improvement: Adjusted EBITDA rose by 13.6%, reflecting improved operational efficiency.
Adjusted EPS Increase: Adjusted EPS saw a significant increase of 23.2%, showcasing enhanced profitability.
Surge in Free Cash Flow: Adjusted free cash flow surged by 103.7%, demonstrating robust cash generation capabilities.
Quarterly Discharge Growth: Total discharge growth for the quarter was 7.8%, highlighting broad-based volume growth across various segments.
Negative
Revenue vs. Expenses Impact: Revenue growth of 12.7% was overshadowed by a 5% increase in operating expenses, leading to a decline in operating margin.
EBITDA Growth Challenges: Adjusted EBITDA growth of 13.6% was negatively impacted by a 10% rise in bad debt expense, indicating worsening collection issues.
Patient Throughput Inefficiencies: Despite a 7.8% increase in total discharges, the average length of stay increased by 3 days, suggesting inefficiencies in patient throughput.
Stagnant Customer Growth: Customer growth was stagnant, with only a 2% increase in new patient admissions compared to the previous quarter, raising concerns about market competitiveness.
Capital Expenditures Increase: The company reported a 15% increase in capital expenditures, which may strain future cash flows and limit financial flexibility.
Encompass Health Corporation (NYSE:EHC) Q4 2024 Earnings Call Transcript
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