Encompass Health (NYSE:EHC) has reported its first quarter 2024 financial results, showcasing strong financial performance. The company’s revenue increased by 13% from the first quarter of 2023, reaching US$1.32 billion. Net income also saw a significant rise, up 28% to US$113.0 million.
The profit margin improved to 8.6%, compared to 7.6% in the same period last year, driven by the higher revenue. Additionally, earnings per share (EPS) increased to US$1.13 from US$0.89 in the first quarter of 2023.
Encompass Health’s revenue and earnings exceeded analyst expectations, with revenue surpassing estimates by 3.4% and EPS beating estimates by 20%. Looking ahead, Encompass Health is forecasted to achieve an average annual revenue growth of 8.6% over the next three years, outperforming the 6.7% growth forecast for the Healthcare industry in the US.
Despite the positive financial performance, Encompass Health’s share price has remained relatively stable compared to the previous week due to a warning sign that has been uncovered by investors.
Readers are encouraged to provide feedback or address any concerns about the content directly to the editorial team at Simply Wall St.
This article provides general commentary based on historical data and analyst forecasts using an unbiased methodology.
It is not intended to be financial advice and does not take into account individual objectives or financial situations.
The analysis aims to provide long-term focused insights driven by fundamental data without positioning in any of the mentioned stocks.
Investors should be aware of potential risks associated with investing in Encompass Health before making any investment decisions based on this information alone.
