Zacks Research Predicts Higher Earnings for Encompass Health

Encompass Health Co. (NYSE:EHC - Free Report) - Investment analysts at Zacks Research lifted their FY2024 earnings estimates for Encompass Health in a report released on Monday, November 11th. Zacks Research analyst Z. Masood now expects that the company will post earnings per share of $4.25 for the year, up from their previous 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 - Get Free Report) last released its quarterly earnings data on Monday, October 28th. The company reported $1.03 EPS for the quarter, topping analysts' consensus estimates of $0.94 by $0.09. Encompass Health had a return on equity of 17.60% and a net margin of 8.10%. The firm had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter in the prior year, the company posted $0.86 earnings per share. The firm's revenue was up 11.9% on a year-over-year basis.

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

Encompass Health Price Performance

Shares of NYSE:EHC traded down $1.52 during midday trading on Tuesday, reaching $101.76. 186,823 shares of the company's stock were exchanged, compared to its average volume of 639,575. Encompass Health has a 12 month low of $63.01 and a 12 month high of $104.55. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.35 and a current ratio of 1.04. The firm has a market capitalization of $10.25 billion, a PE ratio of 24.94, a price-to-earnings-growth ratio of 1.36 and a beta of 0.88. The company's 50 day simple moving average is $95.71 and its two-hundred day simple moving average is $89.84.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in EHC. UMB Bank n.a. increased its position in shares of Encompass Health by 387.7% in the third quarter. UMB Bank n.a. now owns 317 shares of the company's stock valued at $31,000 after acquiring an additional 252 shares during the last quarter. V Square Quantitative Management LLC boosted its holdings in shares of Encompass Health by 53.0% during the third quarter. V Square Quantitative Management LLC now owns 404 shares of the company's stock worth $39,000 after acquiring an additional 140 shares during the period. Oakworth Capital Inc. acquired a new position in shares of Encompass Health in the second quarter valued at approximately $40,000. Avior Wealth Management LLC bought a new position in shares of Encompass Health during the third quarter worth approximately $40,000. Finally, Benjamin F. Edwards & Company Inc. boosted its stake in Encompass Health by 58.9% in the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company's stock valued at $46,000 after purchasing an additional 198 shares during the period. Institutional investors and hedge funds own 97.25% of the company's stock.

Encompass Health Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Thursday, January 2nd will be issued a $0.17 dividend. The ex-dividend date is Thursday, January 2nd. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.67%. Encompass Health's dividend payout ratio (DPR) is presently 16.43%.

Encompass Health announced that its Board of Directors has initiated a share buyback plan on Wednesday, July 24th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to reacquire up to 5.4% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its stock is undervalued.

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.