Outpatient physical therapy provider U.S. Physical Therapy (NYSE:USPH) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.

U.S. Physical Therapy beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $180.4 million, up 16.6% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ sales volume estimates but a significant miss of analysts’ EPS estimates.

Is U.S. Physical Therapy a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting U.S. Physical Therapy’s revenue to grow 13.1% year on year to $176.1 million, improving from the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 per share.U.S. Physical Therapy Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. U.S. Physical Therapy has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average.

Looking at U.S. Physical Therapy’s peers in the healthcare providers & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Encompass Health delivered year-on-year revenue growth of 10.6%, beating analysts’ expectations by 1.7%, and Select Medical reported revenues up 2.4%, falling short of estimates by 2.6%. Encompass Health traded up 11.8% following the results while Select Medical was down 21.8%.

Read our full analysis of Encompass Health’s results here and Select Medical’s results here.

There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 4.4% on average over the last month. U.S. Physical Therapy is up 11% during the same time and is heading into earnings with an average analyst price target of $108.33 (compared to the current share price of $72.23).

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

View Comments