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EHAB NYSE· Enhabit Inc
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EHAB NYSE· Enhabit Inc
Earnings report Q3 2023

EHAB Reports Decrease in Revenue for Latest Quarter

Segments of Revenue

EHAB's revenue for the latest quarter was primarily derived from two segments: Home Health and Hospice.

  • Home Health Segment: The net service revenue for the Home Health segment decreased by 2.5% compared to the same period last year, amounting to $210.9 million. This decrease was primarily due to a decrease in completed episodes and the resumption of sequestration. The segment's episodic net service revenue decreased by 8.0% to $167.3 million, while non-episodic net service revenue increased by 30.5% to $41.1 million.

  • Hospice Segment: The net service revenue for the Hospice segment remained relatively stable, amounting to $47.4 million. The segment derived 98.5% of its net service revenue from Medicare, with managed care and Medicaid contributing 0% and 1.5% respectively.

Strengths

Despite the decrease in revenue, EHAB demonstrated strengths in its financial performance. The company's Home Health segment saw an increase in non-episodic net service revenue, indicating potential growth opportunities in this area. Additionally, EHAB's Hospice segment continued to generate a significant portion of its revenue from Medicare, which provides stability and a reliable revenue source.

Challenges

EHAB faced challenges in its latest quarter, as evidenced by the decrease in revenue. The decrease in completed episodes and the resumption of sequestration impacted the Home Health segment's net service revenue. This highlights the company's vulnerability to external factors that can affect its revenue generation.

Noteworthy

It is noteworthy that EHAB's Home Health segment experienced a decrease in gross margin, excluding depreciation and amortization, by 5.4% compared to the same period last year. This indicates potential cost pressures or inefficiencies within the segment.

Summary

EHAB reported a decrease in revenue for the latest quarter, primarily driven by the Home Health segment. However, the company demonstrated strengths in its financial performance, such as an increase in non-episodic net service revenue and a reliance on Medicare for its Hospice segment. EHAB also faced challenges, including a decrease in completed episodes and the resumption of sequestration. The decrease in gross margin within the Home Health segment is noteworthy and may require further analysis. Overall, EHAB's latest quarter performance reflects a mixed financial picture with both strengths and challenges.

Source documents

Form 10-Q  filed on Nov 14, 2023
5 pages scanned

Reference data

Company financials Q3 revenue 258M
Analyst estimates Q3 EPS missed by -57.78%
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