ENCOMPASS HEALTH Reports Q2 FY2023 Earnings on June 30, 2023
August 8, 2023
🌥️Earnings Overview
On June 30, 2023, ENCOMPASS HEALTH ($NYSE:EHC) revealed their earnings report for the second quarter of FY2023. The total reported revenue was USD 1187.1 million, a decrease of 10.8% compared to the same quarter in the prior year. However, net income was a positive surprise of 87.7% growth from the same period in the previous year, reaching USD 91.4 million.
Share Price
On Tuesday, June 30, 2023, ENCOMPASS HEALTH reported its second quarter earnings for fiscal year 2023. The stock opened at $65.9 and closed at $66.0, down by a slight 0.1% from the previous closing price of 66.0. Despite the small decline in share price, the strong financial results were a positive sign for investors.
In addition, ENCOMPASS HEALTH announced plans to increase its focus on customer experience and digital solutions. The company outlined plans to invest more in technology and develop innovative solutions to better meet customer needs. Overall, ENCOMPASS HEALTH continues to show strong financial performance and a commitment to innovation and customer service. Investors should watch the company closely to see how it utilizes its resources to further improve its financial performance in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Encompass Health. More…
| Total Revenues | Net Income | Net Margin |
| 4.03k | 313.2 | 7.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Encompass Health. More…
| Operations | Investing | Financing |
| 676.9 | -613.2 | -167 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Encompass Health. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.86k | 3.8k | 14.72 |
Key Ratios Snapshot
Some of the financial key ratios for Encompass Health are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -4.3% | 1.6% | 16.4% |
| FCF Margin | ROE | ROA |
| 2.8% | 28.9% | 7.0% |
Analysis
GoodWhale has conducted an analysis of ENCOMPASS HEALTH‘s wellbeing and found that they have a high health score of 8/10 on our Star Chart. This score takes into account their cashflows and debt, and shows that they are capable of paying off their debt and funding future operations. We have classified ENCOMPASS HEALTH as a ‘cow’: a type of company that has the track record of paying out consistent and sustainable dividends. This kind of stock would be attractive to investors that are looking for stability and reliable returns. Our analysis also revealed strengths in dividends and profitability, but weaknesses in asset growth. All factors considered, ENCOMPASS HEALTH is a strong, healthy company, and investors should consider investing in this stock if they are interested in consistent dividend payments. 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
Investors should take note of ENCOMPASS HEALTH‘s second quarter FY2023 earnings report. Total revenue for the quarter fell by 10.8%, however net income increased by 87.7%. Despite the decrease in revenue, the company’s profitability improved significantly, indicating that cost cutting strategies and operational efficiency are being effectively implemented.
The strong growth in net income suggests that the company’s investments in innovation and research have paid off and that it has excellent growth potential. Investors should consider ENCOMPASS HEALTH when making decisions about their portfolios.
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