Zacks Research Issues Negative Outlook for EHC Earnings

Encompass Health Co. (NYSE:EHC - Free Report) - Research analysts at Zacks Research cut their Q4 2025 EPS estimates for Encompass Health in a research note issued on Monday, November 11th. Zacks Research analyst Z. Masood now anticipates that the company will post earnings of $1.15 per share for the quarter, down from their previous forecast 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 - Get Free Report) last posted its quarterly earnings results on Monday, October 28th. The company reported $1.03 EPS for the quarter, topping analysts' consensus estimates of $0.94 by $0.09. The company had revenue of $1.35 billion during the quarter, compared to analysts' expectations 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% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.86 EPS.

A number of other equities analysts have also recently issued reports on the stock. Stephens reiterated an "overweight" rating and set a $105.00 price objective on shares of Encompass Health in a research report on Tuesday, August 6th. KeyCorp upped their price target on shares of Encompass Health from $115.00 to $117.00 and gave the stock an "overweight" rating in a report on Tuesday, October 29th. UBS Group raised their price objective on Encompass Health from $100.00 to $110.00 and gave the company a "buy" rating in a report on Wednesday, September 25th. Royal Bank of Canada upped their target price on Encompass Health from $105.00 to $110.00 and gave the stock an "outperform" rating in a report on Wednesday, October 30th. Finally, Barclays lifted their price target 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 issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $107.11.

Encompass Health Price Performance

NYSE EHC traded up $0.08 during trading on Wednesday, hitting $102.69. 477,303 shares of the company's stock were exchanged, compared to its average volume of 641,013. The stock's 50 day moving average price is $95.90 and its two-hundred day moving average price is $89.98. Encompass Health has a fifty-two week low of $63.59 and a fifty-two week high of $104.55. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.88. The company has a market cap of $10.35 billion, a PE ratio of 24.80, a P/E/G ratio of 1.36 and a beta of 0.88.

Encompass Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Investors 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 dividend yield of 0.66%. The ex-dividend date of this dividend is Thursday, January 2nd. Encompass Health's dividend payout ratio is currently 16.43%.

Encompass Health declared that its board has initiated a share buyback plan on Wednesday, July 24th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 5.4% of its stock through open market purchases. Stock buyback plans are often a sign that the company's leadership believes its shares are undervalued.

Institutional Trading of Encompass Health

A number of institutional investors and hedge funds have recently added to or reduced their stakes in EHC. UMB Bank n.a. raised its position in shares of Encompass Health by 387.7% in the 3rd quarter. UMB Bank n.a. now owns 317 shares of the company's stock worth $31,000 after acquiring an additional 252 shares in the last quarter. V Square Quantitative Management LLC increased its holdings in Encompass Health by 53.0% in the third quarter. V Square Quantitative Management LLC now owns 404 shares of the company's stock worth $39,000 after purchasing an additional 140 shares in the last quarter. Avior Wealth Management LLC acquired a new position in Encompass Health in the third quarter valued at approximately $40,000. Oakworth Capital Inc. bought a new position in shares of Encompass Health during the 2nd quarter worth approximately $40,000. Finally, Benjamin F. Edwards & Company Inc. grew its position in shares of Encompass Health by 58.9% during the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company's stock worth $46,000 after buying an additional 198 shares during the period. Institutional investors and hedge funds own 97.25% of the company's stock.

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.