Encompass Health Corporation (NYSE: EHC), formerly known as HealthSouth Corp (NYSE:EHC), has reached a new 52-week high, with its stock price climbing to $102.89. This milestone reflects a significant uptrend in the company's market performance, marking a substantial 59.9% increase in its 1-year change data. Investors have shown increased confidence in the healthcare services provider, propelling the stock to new heights amidst a dynamic market environment. The company's strategic initiatives and robust financial results have likely contributed to this impressive growth trajectory, signaling a strong outlook for the future.
In other recent news, Encompass Health Corporation reported robust growth in its third-quarter revenue and adjusted EBITDA, marking an 11.9% and 13.4% increase respectively. This substantial growth is attributed to the company's strategic expansion, which included the addition of 99 beds and two new hospitals, leading to an 8.8% increase in total discharges. Despite minor setbacks from hurricanes, Encompass Health has raised its full-year 2024 guidance and reported strong free cash flow for the quarter.
The company's Q3 revenue rose to $1.35 billion, with adjusted EBITDA reaching $269.3 million. Furthermore, the company plans to continue its expansion with the opening of a 61-bed hospital in Houston in 2024. The company also reported a strong Q3 free cash flow of $189.7 million, with a year-to-date total of approximately $0.5 billion.
Encompass Health has raised its full-year 2024 guidance, expecting net operating revenue between $5.325 billion and $5.375 billion, with adjusted EBITDA between $1.07 billion and $1.09 billion. The company anticipates stable labor market conditions and a continued correlation between FTE growth and discharge growth. Lastly, Encompass Health envisions using prefabricated construction methods for the new Houston hospital, expecting cost and timeline reductions.
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