Shares of Encompass Health Corp. dove 5.2% toward a four-month low in premarket trading Tuesday, after the health care services company cut its full-year profit and sales outlook, citing a “challenging” operating environment coupled with an expected “substantial” improvement later this year. The company lowered its guidance range for adjusted earnings per share to $3.76 to $4.05 from $3.83 to $4.19, and to below FactSet consensus of $4.10. Net operating revenue is now expected to be $5.33 billion to $5.42 billion, down from previous guidance of $5.38 billion to $5.50 billion. The FactSet revenue consensus was $5.47 billion. The company also provided separate full-year guidance for its inpatient rehabilitation business, Encompass Health, and its home health and hospice business, Enhabit. The company expects 2022 revenue of $4.25 billion to $4.30 billion for the separate Encompass Health business and of $1.08 billion to $1.12 billion for Enhabit. The stock has slipped 0.6% year to date through Monday, while the S&P 500 has dropped 13.5%.
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