Overview

* Home health and hospice care provider Enhabit ( EHAB ) Q2 net service revenue grows 2.1% yr/yr to $266.1 mln

* Adjusted EBITDA for Q2 beats analyst expectations, rising 6.7% yr/yr

* Adjusted EPS of $0.13, exceeding estimates

Outlook

* Enhabit ( EHAB ) updates 2025 revenue guidance to $1,060 mln-$1,073 mln

* Company raises 2025 adjusted EBITDA forecast to $104 mln-$108 mln

* Enhabit ( EHAB ) increases 2025 adjusted EPS guidance to $0.47-$0.55

Result Drivers

* HOME HEALTH GROWTH - Admissions increased 1.3% yr/yr, aided by payer contract initiatives and stabilization in Medicare Fee-for-Service census

* HOSPICE EXPANSION - Hospice average daily census rose 12.3% yr/yr, marking the sixth consecutive qtr of growth

* DEBT REDUCTION - Enhabit ( EHAB ) reduced bank debt by $10 mln, enhancing liquidity and financial stability

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $0.13 $0.1 (6

Adjusted Analysts

EPS )

Q2 EPS $0.1

Q2 Beat $26.90 $25.20

Adjusted mln mln (5

EBITDA Analysts

)

Q2 Gross 49.1%

Margin

Q2 10.1%

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 $10.00, about 33.1% above its August 5 closing price of $6.69

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

(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.)