Encompass Health (NYSE:EHC) reported strong financial results for the first quarter of 2024, with revenue increasing by 13% to US$1.32 billion compared to the same period in 2023. Net income also saw a significant growth of 28% to US$113.0 million. The profit margin improved to 8.6% from 7.6% in the first quarter of 2023, driven by the higher revenue. Earnings per share (EPS) rose to US$1.13 from US$0.89 in the previous year.
Encompass Health’s performance exceeded analyst expectations, with revenue surpassing estimates by 3.4% and EPS beating estimates by 20%. Looking forward, the company is forecasted to achieve an average annual revenue growth rate 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 results, Encompass Health’s share price remained relatively unchanged from a week ago. However, investors should be aware of a warning sign that has been uncovered.
This article by Simply Wall St provides general information based on historical data and analyst forecasts. It is not intended as financial advice and does not take into account individual objectives or financial situations. The analysis aims to offer unbiased insights driven by fundamental data.
It’s important to note that simply because Encompass Health is projected to grow at a faster rate than the industry as a whole doesn’t necessarily mean that it will outperform all other healthcare companies in terms of stock performance.
Investors are encouraged to conduct their own research before making any investment decisions and seek advice from a licensed financial advisor if necessary.
Simply Wall St holds no positions in any of the stocks mentioned.
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