Encompass Health (NYSE:EHC) reported its first quarter 2024 financial results, and the results were nothing short of impressive. The company’s revenue increased by 13% compared to the same period in 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.
But that’s not all – earnings per share (EPS) increased to US$1.13 from US$0.89 in the first quarter of 2023, beating analyst estimates by 20%. Moreover, Encompass Health’s revenue and earnings exceeded analyst expectations, with revenue surpassing estimates by 3.4%.
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. This is a positive sign for investors looking for long-term growth potential in this sector.
However, despite the positive financial performance, Encompass Health’s share price has remained relatively stable compared to the previous week. It’s important for investors to be aware of potential risks associated with investing in this company, including a warning sign that has been uncovered recently. Readers are encouraged to provide feedback or address any concerns about this content directly to our 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 as financial advice and does not take into account individual objectives or financial situations. Our analysis aims to provide long-term focused insights driven by fundamental data.
In conclusion, Encompass Health has reported strong financial performance in its first quarter results for 2024, with revenue and earnings exceeding analyst expectations and achieving an average annual revenue growth forecast of 8