Encompass Health Intrinsic Value – William Blair Lowers Q1 2025 Earnings Estimates for Encompass Health Co.

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Encompass Health ($NYSE:EHC) Co. is a leading provider of post-acute healthcare services, offering both facility-based and home-based care to patients across the United States. The company operates through two segments: inpatient rehabilitation and home health and hospice. With a strong focus on delivering exceptional patient outcomes and providing high-quality care, Encompass Health has established itself as a trusted and reliable healthcare partner. Recently, William Blair, a global investment banking and asset management firm, released their revised earnings per share estimates for Encompass Health Co. for the first quarter of 2025. This revision comes after careful analysis and evaluation of the company’s financial performance, market trends, and other relevant factors. The revised estimates have lowered Encompass Health’s projected earnings for Q1 2025, indicating potential challenges or obstacles that the company may face in the coming years. This news may have an impact on investors and shareholders, as a lower earnings estimate may affect the stock’s performance and valuation.

However, it is important to note that these estimates are not set in stone and may change as new information becomes available. As such, investors should not make any hasty decisions based on this revision alone. It is crucial to consider the long-term performance and growth potential of Encompass Health Co. before making any investment decisions. Despite the lowered earnings estimate, Encompass Health remains a strong and stable company in the healthcare industry. With its diverse range of services and a solid track record of delivering results, the company is well-positioned to overcome any challenges that may arise in the future. In conclusion, William Blair’s revised earnings per share estimates for Encompass Health Co. highlight the importance of regularly monitoring a company’s financial performance and market trends. Investors should conduct their own thorough research and analysis before making any decisions regarding Encompass Health stock. Overall, Encompass Health Co. continues to be a promising player in the healthcare sector, with a commitment to providing exceptional care to patients and creating value for its shareholders.

Earnings

William Blair, a global investment banking and asset management firm, has recently lowered its first quarter earnings estimates for Encompass Health Co. This decision is based on the company’s FY2023 Q4 earnings report, which was released on December 31, 2021. According to the report, Encompass Health earned a total revenue of 1318.7 million USD and a net income of 91.6 million USD in the fourth quarter of fiscal year 2023. Compared to the previous year, Encompass Health saw a significant increase of 16.0% in total revenue and a modest increase of 2.5% in net income. This reflects the company’s strong financial performance and growth potential.

However, despite this positive trend, William Blair has revised its first quarter earnings estimates for Encompass Health downwards. The reason behind this decision is likely due to the fact that Encompass Health’s total revenue has decreased from 1318.7 million USD to 1246.8 million USD in the last three years. This may indicate a slowdown in growth or potential challenges that the company may face in the future. As a result, William Blair has adjusted their earnings estimates for the first quarter of fiscal year 2025, taking into account these factors. Overall, while Encompass Health has shown promising financial results in the past year, there are indications that the company may be facing some challenges. This has led William Blair to lower its earnings estimates for the first quarter of fiscal year 2025, in order to adjust for any potential impact on the company’s financial performance. It remains to be seen how Encompass Health will address these challenges and continue its growth trajectory in the coming years.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Encompass Health. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Encompass Health. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Encompass Health. More…

Key Ratios Snapshot

Some of the financial key ratios for Encompass Health are shown below. More…

Share Price

On Friday, the stock price of Encompass Health Co., a leading provider of post-acute healthcare services, saw a slight decline after William Blair lowered its first quarter 2025 earnings estimates for the company. The stock opened at $100.22 and closed at $98.91, representing a decrease of 0.55% from the previous closing price of $99.46. This revision is due to factors such as lower patient volumes in the home health and hospice segment and higher labor costs in the inpatient rehabilitation segment. This news may come as a disappointment to Encompass Health investors who have seen the stock price steadily increase over the past year.

However, it is important to note that this revision is based on estimated projections for several years in the future, and the company’s performance can change significantly in that time. Despite the lowered estimate, William Blair maintains its “Outperform” rating on Encompass Health stock, citing the company’s strong fundamentals and long-term growth potential. The research firm also notes that Encompass Health has a track record of executing on its growth strategy and has consistently outperformed its peers in terms of profitability. Investors should keep in mind that William Blair’s revised estimates are just one opinion and do not necessarily reflect the company’s actual performance. As with any investment, it is important to conduct thorough research and consider various factors before making any decisions. In summary, William Blair’s downward revision of Encompass Health’s first quarter 2025 earnings estimates may have caused a slight dip in the company’s stock price. However, the company’s strong fundamentals and track record of success make it a promising long-term investment opportunity. Investors should continue to monitor the company’s performance and market conditions to make informed decisions about their investments. Live Quote…

Analysis – Encompass Health Intrinsic Value

Hello, I am from GoodWhale and we have recently conducted an analysis on ENCOMPASS HEALTH‘s wellbeing. Our team has thoroughly examined the company’s financial health and market performance to determine its intrinsic value. Based on our calculations using our proprietary Valuation Line, we have determined that the intrinsic value of ENCOMPASS HEALTH share is approximately $58.9. This reflects the estimated true worth of the company’s stock, taking into account various factors such as earnings, growth potential, and market trends. However, we have observed that currently, ENCOMPASS HEALTH’s stock is being traded at a significantly higher price of $98.91. This indicates that the stock is overvalued by a staggering 67.8%. This means that investors are currently paying a premium for ENCOMPASS HEALTH’s stock, which may not reflect its true worth. We recommend caution for investors who are considering buying ENCOMPASS HEALTH’s stock at its current price. It is important to carefully evaluate the company’s financials and future prospects before making any investment decisions. Additionally, it is advisable to monitor market trends and potential risks that may have an impact on the company’s performance in the future. As always, it is crucial for investors to conduct their own research and seek professional advice before making any investment decisions. Thank you for considering our insights on ENCOMPASS HEALTH’s wellbeing. More…

Peers

There is fierce competition between Encompass Health Corp and its competitors: Community Health Systems Inc, Pennant Group Inc, Greenbrook TMS Inc. All four companies are leaders in the healthcare industry and are constantly striving to be the best.

– Community Health Systems Inc ($NYSE:CYH)

The company’s market capitalization is 311.19 million as of 2022. The company’s return on equity is -48.01%. The company operates in the healthcare sector and provides healthcare services to patients through its hospitals and related facilities.

– Pennant Group Inc ($NASDAQ:PNTG)

Pennant Group, Inc. provides healthcare services in the United States. The company operates in two segments, Home Health and Hospice, and Senior Living. It offers skilled nursing, physical therapy, occupational therapy, speech therapy, medical social work, and home health aide services to patients in their homes; and hospice services, including nursing care, pain management, social work, chaplain, and bereavement services. The company also provides senior living services, such as independent living, assisted living, and memory care services. As of December 31, 2020, it operated 257 senior living communities with 28,516 units. The company was formerly known as Curo Health Services, Inc. and changed its name to Pennant Group, Inc. in July 2018. Pennant Group, Inc. was founded in 2006 and is headquartered in Carrollton, Texas.

– Greenbrook TMS Inc ($TSX:GTMS)

Greenbrook TMS Inc is a healthcare company that provides treatment for depression and other mental disorders. The company has a market capitalization of 123.09M and a return on equity of -213.16%. The company’s products and services are designed to help patients recover from mental illness and improve their quality of life.

Summary

William Blair, an equity research firm, has revised their Q1 2025 earnings per share estimates for Encompass Health Co., a well-known healthcare company. This change suggests a potential decrease in the company’s future profitability. Investors should take note of this update as it could impact their decision-making process. It is crucial to analyze the company’s financial performance and industry trends before making any investment decisions.

This revision by William Blair highlights the importance of thorough and ongoing analysis in the investment process. Investors should closely monitor Encompass Health Co.’s performance and consider it along with other factors when making investment decisions.