Outpatient physical therapy provider U.S. Physical Therapy (NYSE:USPH) will be announcing earnings results tomorrow after market close. Here’s what investors should know.

U.S. Physical Therapy met analysts’ revenue expectations last quarter, reporting revenues of $168 million, up 12% year on year. It was a mixed quarter for the company, with a narrow beat 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 13.8% year on year to $176.2 million, improving from the 9.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 per share.

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 1.9% on average.

Looking at U.S. Physical Therapy’s peers in the outpatient & specialty care segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Encompass Health delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 1.8%, and DaVita reported revenues up 4.7%, topping estimates by 0.9%. Encompass Health traded up 1.3% following the results while DaVita was down 11.1%.

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

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the outpatient & specialty care stocks have shown solid performance, the group has generally underperformed, with share prices down 5.4% on average over the last month. U.S. Physical Therapy is down 4.5% during the same time and is heading into earnings with an average analyst price target of $113 (compared to the current share price of $86.25).

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