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Market Overview

Encompass Health's Earnings: A Preview


Encompass Health (NYSE:EHC) announces its next round of earnings this Tuesday, July 27. Here is Benzinga's everything-that-matters guide for this Tuesday's Q2 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Encompass Health reporting earnings of $0.98 per share on revenue of $1.26 billion. In the same quarter last year, Encompass Health announced EPS of $0.31 on revenue of $1.07 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release.
When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 216.13%. Revenue would be have grown 17.32% from the same quarter last year. Encompass Health's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 0.82 0.85 0.75 0.51
EPS Actual 1.05 0.93 0.78 0.31
Revenue Estimate 1.23 B 1.21 B 1.18 B 1.08 B
Revenue Actual 1.23 B 1.21 B 1.17 B 1.07 B

eps graph

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Over the last 52-week period, shares are up 14.98%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Encompass Health is scheduled to hold the call at 10:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings