Encompass Health (EHC) reports Q3: everything you need to know ahead of earnings

Health care services provider Encompass Health (NYSE:EHC) will be reporting earnings this Wednesday afternoon. Here’s what investors should know.

Encompass Health beat analysts’ revenue expectations last quarter, reporting revenues of $1.60 billion, up 9.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.

Is Encompass Health a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Encompass Health’s revenue to grow 8.3% year on year, slowing from the 9.4% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Encompass Health rarely misses Wall Street’s revenue estimates.

Looking at Encompass Health’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Elevance Health posted flat year-on-year revenue, beating analysts’ expectations by 3.1%, and UnitedHealth reported flat revenue, topping estimates by 1.2%. Elevance Health traded up 1.4% following the results while UnitedHealth was also up 4.5%.

Read our full analysis of Elevance Health’s results here and UnitedHealth’s results here.

There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 3.1% on average over the last month. Encompass Health is down 5.7% during the same time and is heading into earnings with an average analyst price target of $148.17 (compared to the current share price of $116.94).

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