As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the outpatient & specialty care industry, including U.S. Physical Therapy (NYSE: USPH) and its peers.

The outpatient and specialty care industry delivers targeted medical services in non-hospital settings that are often cost-effective compared to inpatient alternatives. This means that they are more desired as rising healthcare costs and ways to combat them become more and more top-of-mind. Outpatient and specialty care providers boast revenue streams that are stable due to the recurring nature of treatment for chronic conditions and long-term patient relationships. However, their reliance on government reimbursement programs like Medicare means stroke-of-the-pen risk. Additionally, scaling a network of facilities can be capital-intensive with uneven return profiles amid competition from integrated healthcare systems. Looking ahead, the industry is positioned to grow as demand for outpatient services expands, driven by aging populations, a rising prevalence of chronic diseases, and a shift toward value-based care models. Tailwinds include advancements in medical technology that support more complex procedures in outpatient settings and the increasing focus on preventive care, which can be aided by data and AI. However, headwinds such as reimbursement rate cuts, labor shortages, and the financial strain of digitization may temper growth.

The 7 outpatient & specialty care stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 8.5% on average since the latest earnings results.

U.S. Physical Therapy (NYSE: USPH)

With a nationwide footprint spanning 671 clinics across 42 states, U.S. Physical Therapy (NYSE: USPH) operates a network of outpatient physical therapy clinics and provides industrial injury prevention services to employers across the United States.

U.S. Physical Therapy reported revenues of $202.7 million, up 12.3% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ revenue estimates but EPS in line with analysts’ estimates.

Chris Reading, Chief Executive Officer, said, “Our team delivered a strong finish to a solid year where we made progress around a number of key initiatives which helped to deliver revenue growth of more than 16%, gross profit growth of over 20%, and margin and net rate improvements, among other positive developments. Additionally, we have recently announced several acquisitions as well as new, important hospital relationships in key markets which will create long-term value and increase our ability to serve patients in those areas. We have a very clear plan for the year ahead and we are excited to bring those plans to fruition with the capable help of our partners and our support teams around the country.”

Interestingly, the stock is up 1.4% since reporting and currently trades at $82.84.

Is now the time to buy U.S. Physical Therapy? Access our full analysis of the earnings results here, it’s free.

Best Q4: DaVita (NYSE: DVA)

With over 2,600 dialysis centers across the United States and a presence in 13 countries, DaVita (NYSE: DVA) operates a network of dialysis centers providing treatment and care for patients with chronic kidney disease and end-stage kidney disease.

DaVita reported revenues of $3.62 billion, up 9.9% year on year, outperforming analysts’ expectations by 3.2%. The business had a very strong quarter with a solid beat of analysts’ full-year EPS guidance estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 36.7% since reporting. It currently trades at $152.01.

Is now the time to buy DaVita? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Surgery Partners (NASDAQ: SGRY)

With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ: SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.

Surgery Partners reported revenues of $885 million, up 2.4% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

Surgery Partners delivered the slowest revenue growth and weakest full-year guidance update in the group. As expected, the stock is down 13.3% since the results and currently trades at $13.78.

Read our full analysis of Surgery Partners’s results here.

Select Medical (NYSE: SEM)

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE: SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Select Medical reported revenues of $1.40 billion, up 6.4% year on year. This result topped analysts’ expectations by 2.3%. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS estimates.

Select Medical pulled off the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at $16.19.

Read our full, actionable report on Select Medical here, it’s free.

Encompass Health (NYSE: EHC)

With a network of 161 specialized facilities across 37 states and Puerto Rico, Encompass Health (NYSE: EHC) operates inpatient rehabilitation hospitals that help patients recover from strokes, hip fractures, and other debilitating conditions.

Encompass Health reported revenues of $1.54 billion, up 9.9% year on year. This print met analysts’ expectations. Aside from that, it was a satisfactory quarter as it also logged an impressive beat of analysts’ full-year EPS guidance estimates but full-year revenue guidance meeting analysts’ expectations.

Encompass Health had the weakest performance against analyst estimates among its peers. The stock is up 8.5% since reporting and currently trades at $107.99.

Read our full, actionable report on Encompass Health here, it’s free.

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