Overview

* Enhabit ( EHAB ) Q3 adjusted EPS beats analyst expectations, reflecting strong execution on strategic priorities

* Adjusted EBITDA for Q3 beats estimates, growing 10.2% year-over-year

* Company reduced bank debt by $15 mln in Q3, achieving a leverage ratio of 3.9x

Outlook

* Company updates 2025 net service revenue guidance to $1,058 mln to $1,063 mln

* Enhabit ( EHAB ) revises 2025 adjusted EBITDA guidance to $106 mln to $109 mln

* Company raises 2025 adjusted EPS guidance to $0.50 to $0.56

Result Drivers

* HOSPICE GROWTH - Hospice segment net service revenue increased 20% year-over-year, contributing significantly to overall revenue growth

* ADMISSIONS INCREASE - Home health admissions grew 3.6% year-over-year, with non-Medicare admissions up 10.4%

* COST EFFICIENCY - Hospice cost per patient day decreased 3.1%, and home health cost per patient day improved year over year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $0.17 $0.12 (5

Adjusted Analysts

EPS )

Q3 EPS $0.22

Q3 Beat $27 mln $26.10

Adjusted mln (5

EBITDA Analysts

)

Q3 Gross 48.50%

Margin

Q3 10.20%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the healthcare facilities & services peer group is "buy."

* Wall Street's median 12-month price target for Enhabit Inc ( EHAB ) is $9.00, about 9.4% above its November 4 closing price of $8.15

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)