Zacks Research Expects Lower Earnings for Encompass Health

Encompass Health Co. (NYSE:EHC) – Equities research analysts at Zacks Research decreased their Q4 2025 EPS estimates for shares of Encompass Health in a research note issued on Monday, November 11th. Zacks Research analyst Z. Masood now expects that the company will earn $1.15 per share for the quarter, down from their previous estimate of $1.18. 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 2026 earnings at $1.35 EPS and FY2026 earnings at $5.31 EPS.

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

EHC has been the topic of several other research reports. Truist Financial reiterated a “buy” rating and set a $116.00 price target (up previously from $108.00) on shares of Encompass Health in a research report on Wednesday, October 30th. Stephens reissued an “overweight” rating and set a $105.00 price target on shares of Encompass Health in a research note on Tuesday, August 6th. KeyCorp raised their price target on shares of Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a report on Tuesday, October 29th. UBS Group upped their price objective on Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a report on Wednesday, September 25th. Finally, Barclays lifted their target price on Encompass Health from $109.00 to $116.00 and gave the company an “overweight” rating in a research note on Tuesday, October 29th. Nine research analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, Encompass Health presently has an average rating of “Buy” and an average target price of $107.11.

Encompass Health Price Performance

Encompass Health stock opened at $102.69 on Wednesday. Encompass Health has a 52 week low of $63.59 and a 52 week high of $104.55. The firm has a market cap of $10.35 billion, a P/E ratio of 24.80, a P/E/G ratio of 1.36 and a beta of 0.88. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.04 and a current ratio of 1.04. The business’s fifty day moving average is $95.90 and its two-hundred day moving average is $89.98.

Encompass Health Dividend Announcement

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

Encompass Health declared that its board has authorized a stock repurchase program on Wednesday, July 24th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to repurchase up to 5.4% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Encompass Health

Institutional investors and hedge funds have recently modified their holdings of the business. Townsquare Capital LLC acquired a new stake in Encompass Health during the 3rd quarter worth approximately $405,000. BNP Paribas Financial Markets raised its holdings in shares of Encompass Health by 38.1% during the third quarter. BNP Paribas Financial Markets now owns 38,397 shares of the company’s stock worth $3,711,000 after acquiring an additional 10,591 shares during the period. Hancock Whitney Corp bought a new stake in Encompass Health in the 3rd quarter valued at $782,000. Centaurus Financial Inc. bought a new position in Encompass Health during the 3rd quarter worth about $108,000. Finally, Algert Global LLC raised its stake in shares of Encompass Health by 89.5% in the 3rd quarter. Algert Global LLC now owns 150,570 shares of the company’s stock valued at $14,551,000 after purchasing an additional 71,132 shares during the period. 97.25% of the stock is currently owned by institutional investors and hedge funds.

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.