Zacks Research Issues Negative Outlook for EHC Earnings

Encompass Health Co. (NYSE:EHC - Free Report) - Investment analysts at Zacks Research cut their Q4 2025 earnings per share (EPS) estimates for shares of Encompass Health in a report issued on Wednesday, January 8th. Zacks Research analyst Z. Masood now expects that the company will post earnings of $1.14 per share for the quarter, down from their prior estimate of $1.15. 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 Q2 2026 earnings at $1.40 EPS.

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

EHC has been the topic of several other reports. UBS Group increased their target price on Encompass Health from $100.00 to $110.00 and gave the stock a "buy" rating in a research report on Wednesday, September 25th. Truist Financial reiterated a "buy" rating and issued a $116.00 price objective (up from $108.00) on shares of Encompass Health in a research report on Wednesday, October 30th. Royal Bank of Canada upped their target price on shares of Encompass Health from $105.00 to $110.00 and gave the stock an "outperform" rating in a research report on Wednesday, October 30th. 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 research note on Tuesday, October 29th. Finally, Barclays boosted their price objective on Encompass Health from $109.00 to $116.00 and gave the stock an "overweight" rating in a research report on Tuesday, October 29th. Nine investment analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $107.11.

Encompass Health Stock Performance

Shares of Encompass Health stock traded down $1.76 on Friday, reaching $91.08. 464,614 shares of the company were exchanged, compared to its average volume of 648,235. Encompass Health has a 1-year low of $67.94 and a 1-year high of $104.55. The firm has a market cap of $9.18 billion, a price-to-earnings ratio of 22.00, a P/E/G ratio of 1.30 and a beta of 0.89. 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 company's 50-day moving average is $98.23 and its two-hundred day moving average is $93.65.

Institutional Investors Weigh In On Encompass Health

Several hedge funds have recently modified their holdings of EHC. CIBC Asset Management Inc increased its position in shares of Encompass Health by 3.5% in the third quarter. CIBC Asset Management Inc now owns 2,957 shares of the company's stock worth $286,000 after acquiring an additional 100 shares in the last quarter. Commonwealth Equity Services LLC grew its holdings in shares of Encompass Health by 1.3% during the second 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 in the last quarter. V Square Quantitative Management LLC lifted its stake in Encompass Health by 53.0% in the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company's stock worth $39,000 after acquiring an additional 140 shares in the last quarter. Verdence Capital Advisors LLC boosted its position in Encompass Health by 4.6% during the 3rd quarter. Verdence Capital Advisors LLC now owns 3,670 shares of the company's stock worth $355,000 after acquiring an additional 160 shares during the period. Finally, Mount Yale Investment Advisors LLC grew its stake in Encompass Health by 6.6% during the 2nd quarter. Mount Yale Investment Advisors LLC now owns 2,749 shares of the company's stock valued at $236,000 after acquiring an additional 170 shares in the last quarter. 97.25% of the stock is owned by hedge funds and other institutional investors.

Encompass Health Announces Dividend

The firm also recently announced 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 dividend on an annualized basis and a yield of 0.75%. The ex-dividend date is Thursday, January 2nd. Encompass Health's payout ratio is 16.43%.

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.