Zacks Research Brokers Increase Earnings Estimates for EHC

Encompass Health Co. (NYSE:EHC) – Analysts at Zacks Research lifted their FY2024 earnings per share (EPS) estimates for Encompass Health in a note issued to investors on Monday, November 11th. Zacks Research analyst Z. Masood now expects that the company will earn $4.25 per share for the year, up from their prior forecast of $4.14. The consensus estimate for Encompass Health’s current full-year earnings is $4.29 per share. Zacks Research also issued estimates for Encompass Health’s Q1 2025 earnings at $1.25 EPS, Q2 2025 earnings at $1.22 EPS, Q3 2025 earnings at $1.14 EPS, FY2025 earnings at $4.75 EPS, Q2 2026 earnings at $1.41 EPS and Q3 2026 earnings at $1.24 EPS.

Encompass Health (NYSE:EHC) last announced its quarterly earnings data on Monday, October 28th. The company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.09. Encompass Health had a return on equity of 17.60% and a net margin of 8.10%. The business had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same quarter in the prior year, the firm posted $0.86 earnings per share. The company’s revenue was up 11.9% on a year-over-year basis.

A number of other brokerages have also recently weighed in on EHC. Barclays raised their target price on shares of Encompass Health from $109.00 to $116.00 and gave the stock an “overweight” rating in a report on Tuesday, October 29th. KeyCorp raised their price objective on Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 29th. Royal Bank of Canada boosted their target price on Encompass Health from $105.00 to $110.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 30th. UBS Group increased their price target on Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a research report on Wednesday, September 25th. Finally, Stephens restated an “overweight” rating and set a $105.00 price objective on shares of Encompass Health in a report on Tuesday, August 6th. Nine research analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus target price of $107.11.

Encompass Health Stock Performance

NYSE:EHC opened at $102.69 on Tuesday. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.88. The company has a 50-day moving average of $95.90 and a 200-day moving average of $89.98. Encompass Health has a twelve month low of $63.59 and a twelve month high of $104.55. The firm has a market cap of $10.35 billion, a price-to-earnings ratio of 24.80, a price-to-earnings-growth ratio of 1.36 and a beta of 0.88.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in EHC. BNP Paribas Financial Markets increased its holdings in Encompass Health by 57.5% in the first quarter. BNP Paribas Financial Markets now owns 30,313 shares of the company’s stock worth $2,503,000 after buying an additional 11,070 shares during the last quarter. Janney Montgomery Scott LLC increased its stake in shares of Encompass Health by 37.4% during the 1st quarter. Janney Montgomery Scott LLC now owns 9,521 shares of the company’s stock worth $786,000 after purchasing an additional 2,592 shares during the last quarter. Envestnet Portfolio Solutions Inc. raised its holdings in shares of Encompass Health by 10.6% during the 1st quarter. Envestnet Portfolio Solutions Inc. now owns 6,410 shares of the company’s stock valued at $529,000 after purchasing an additional 616 shares in the last quarter. QRG Capital Management Inc. lifted its stake in shares of Encompass Health by 23.4% in the 1st quarter. QRG Capital Management Inc. now owns 7,738 shares of the company’s stock valued at $639,000 after purchasing an additional 1,467 shares during the last quarter. Finally, Entropy Technologies LP boosted its holdings in Encompass Health by 32.5% in the first quarter. Entropy Technologies LP now owns 11,398 shares of the company’s stock worth $941,000 after purchasing an additional 2,798 shares in the last quarter. Institutional investors and hedge funds own 97.25% of the company’s stock.

Encompass Health announced that its Board of Directors has initiated a share repurchase program on Wednesday, July 24th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to reacquire up to 5.4% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Encompass Health Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Thursday, January 2nd will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 0.66%. The ex-dividend date of this dividend is Thursday, January 2nd. Encompass Health’s dividend payout ratio is currently 16.43%.

Encompass Health Company Profile

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.