Encompass Health (NYSE:EHC) Posts Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Encompass Health (NYSE:EHC - Get Free Report) released its earnings results on Monday. The company reported $1.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.94 by $0.09, Briefing.com reports. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. During the same period in the previous year, the company earned $0.86 earnings per share. Encompass Health's revenue was up 11.9% compared to the same quarter last year. Encompass Health updated its FY24 guidance to $4.19-$4.33 EPS and its FY 2024 guidance to 4.190-4.330 EPS.

Encompass Health Stock Performance

Shares of Encompass Health stock traded up $6.87 on Tuesday, reaching $99.96. The stock had a trading volume of 2,378,365 shares, compared to its average volume of 636,316. Encompass Health has a fifty-two week low of $59.57 and a fifty-two week high of $102.36. The business's 50-day moving average price is $93.90 and its two-hundred day moving average price is $88.52. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.35 and a current ratio of 1.35. The stock has a market cap of $10.06 billion, a P/E ratio of 24.14, a price-to-earnings-growth ratio of 1.45 and a beta of 0.88.

Encompass Health Dividend Announcement

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

Insider Buying and Selling

In other news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total value of $1,058,528.40. Following the transaction, the chief financial officer now directly owns 136,227 shares in the company, valued at approximately $11,761,839.18. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 2.10% of the company's stock.

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

Analysts Set New Price Targets

A number of analysts recently weighed in on EHC shares. KeyCorp raised their target price on shares of Encompass Health from $115.00 to $117.00 and gave the stock an "overweight" rating in a report on Tuesday. Barclays lifted their target price on Encompass Health from $109.00 to $116.00 and gave the stock an "overweight" rating in a report on Tuesday. UBS Group upped their target price on Encompass Health from $100.00 to $110.00 and gave the company a "buy" rating in a report on Wednesday, September 25th. Leerink Partners started coverage on Encompass Health in a research note on Wednesday, July 10th. They issued an "outperform" rating and a $100.00 price target on the stock. Finally, Royal Bank of Canada upped their price objective on shares of Encompass Health from $95.00 to $105.00 and gave the company an "outperform" rating in a research note on Thursday, September 26th. Nine analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Buy" and an average target price of $105.67.

About Encompass Health

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.