William Blair Issues Pessimistic Forecast for EHC Earnings

Encompass Health Co. (NYSE:EHC) – Research analysts at William Blair dropped their Q1 2025 EPS estimates for Encompass Health in a research note issued to investors on Friday, November 15th. William Blair analyst J. Haase now anticipates that the company will post earnings of $1.20 per share for the quarter, down from their prior forecast of $1.29. The consensus estimate for Encompass Health’s current full-year earnings is $4.29 per share. William Blair also issued estimates for Encompass Health’s Q2 2025 earnings at $1.18 EPS.

A number of other brokerages have also recently weighed in on EHC. Stephens reissued an “overweight” rating and issued a $105.00 price target on shares of Encompass Health in a research note on Tuesday, August 6th. UBS Group lifted their price target on Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research note on Wednesday, September 25th. Royal Bank of Canada lifted their price target on Encompass Health from $105.00 to $110.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 30th. Truist Financial reissued a “buy” rating and issued a $116.00 price target (up previously from $108.00) on shares of Encompass Health in a research note on Wednesday, October 30th. Finally, KeyCorp lifted their price target on Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 29th. Nine equities research analysts have rated the stock with a buy rating and two have issued a strong buy rating to the stock. 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

NYSE:EHC opened at $98.85 on Monday. The business’s 50-day moving average price is $96.38 and its 200 day moving average price is $90.35. The firm has a market cap of $9.96 billion, a P/E ratio of 23.88, a PEG ratio of 1.31 and a beta of 0.88. Encompass Health has a 52-week low of $63.59 and a 52-week high of $104.55. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.88.

Encompass Health (NYSE:EHC) last released its earnings results on Monday, October 28th. The company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.94 by $0.09. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. Encompass Health had a return on equity of 17.60% and a net margin of 8.10%. Encompass Health’s revenue was up 11.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.86 earnings per share.

Encompass Health announced that its board has authorized a stock buyback program on Wednesday, July 24th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to purchase up to 5.4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Encompass Health Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Thursday, January 2nd will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Thursday, January 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 0.69%. Encompass Health’s payout ratio is presently 16.43%.

Institutional Investors Weigh In On Encompass Health

A number of institutional investors have recently bought and sold shares of EHC. CIBC Asset Management Inc lifted its holdings in shares of Encompass Health by 3.5% during the 3rd quarter. CIBC Asset Management Inc now owns 2,957 shares of the company’s stock valued at $286,000 after buying an additional 100 shares during the last quarter. Commonwealth Equity Services LLC lifted its holdings in shares of Encompass Health by 1.3% during the 2nd quarter. Commonwealth Equity Services LLC now owns 9,845 shares of the company’s stock valued at $845,000 after buying an additional 123 shares during the last quarter. V Square Quantitative Management LLC lifted its holdings in shares of Encompass Health by 53.0% during the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock valued at $39,000 after buying an additional 140 shares during the last quarter. O Shaughnessy Asset Management LLC lifted its holdings in shares of Encompass Health by 3.9% during the 1st quarter. O Shaughnessy Asset Management LLC now owns 4,246 shares of the company’s stock valued at $351,000 after buying an additional 160 shares during the last quarter. Finally, Verdence Capital Advisors LLC lifted its holdings in shares of Encompass Health by 4.6% during the 3rd quarter. Verdence Capital Advisors LLC now owns 3,670 shares of the company’s stock valued at $355,000 after buying an additional 160 shares during the last quarter. 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.