EarningsShares traded up 12% after Encompass reported a clean beat-and-raise first quarter, including revenue of $1.455 billion, 2% above consensus, and adjusted EBITDA of $314 million, which exceeded expectations by nearly 8%.
GuidanceManagement modestly raised guidance across all key metrics, including a 1% raise in revenue guidance and a 2% increase in the adjusted EBITDA outlook.
Operational PerformanceThe positive first-quarter results reflect both a strong demand environment for inpatient rehab facilities and continued execution from Encompass, despite a challenging operating environment.