Encompass Health (NYSE:EHC) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Encompass Health (NYSE:EHC) posted its quarterly earnings results on Wednesday. The company reported $1.55 earnings per share for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07, FiscalAI reports. The company had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a return on equity of 18.34% and a net margin of 10.01%.The business’s quarterly revenue was up 9.6% on a year-over-year basis. During the same period last year, the business earned $1.40 EPS. Encompass Health updated its FY 2026 guidance to 6.020-6.250 EPS.

Encompass Health Price Performance

EHC stock traded up $0.99 during mid-day trading on Friday, hitting $125.81. The stock had a trading volume of 256,483 shares, compared to its average volume of 1,077,367. The firm has a fifty day simple moving average of $106.52 and a 200 day simple moving average of $104.44. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. Encompass Health has a 52 week low of $92.77 and a 52 week high of $127.99. The firm has a market capitalization of $12.48 billion, a P/E ratio of 20.40, a P/E/G ratio of 2.42 and a beta of 0.72.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be paid a dividend of $0.21 per share. The ex-dividend date is Thursday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. Encompass Health’s dividend payout ratio is currently 12.69%.

Insider Buying and Selling at Encompass Health

In related news, EVP Patrick William Tuer sold 682 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $104.56, for a total transaction of $71,309.92. Following the completion of the transaction, the executive vice president directly owned 24,755 shares in the company, valued at $2,588,382.80. This represents a 2.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 1.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Encompass Health

A number of hedge funds and other institutional investors have recently bought and sold shares of EHC. Caitong International Asset Management Co. Ltd boosted its stake in shares of Encompass Health by 36,200.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock valued at $46,000 after purchasing an additional 362 shares in the last quarter. Aster Capital Management DIFC Ltd bought a new stake in Encompass Health during the 4th quarter worth approximately $55,000. Danske Bank A S bought a new position in shares of Encompass Health during the third quarter valued at $76,000. Atlas Capital Advisors Inc. bought a new stake in shares of Encompass Health in the fourth quarter worth $82,000. Finally, Employees Retirement System of Texas raised its position in Encompass Health by 105.6% during the 3rd quarter. Employees Retirement System of Texas now owns 956 shares of the company’s stock worth $121,000 after purchasing an additional 491 shares during the last quarter. Institutional investors own 97.25% of the company’s stock.

Analyst Ratings Changes

EHC has been the subject of a number of recent analyst reports. TD Cowen started coverage on shares of Encompass Health in a report on Thursday, May 28th. They set a “buy” rating and a $125.00 price target for the company. UBS Group reissued a “buy” rating and issued a $155.00 price target on shares of Encompass Health in a research report on Friday. Truist Financial upped their target price on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Friday. Barclays boosted their price objective on Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a research note on Thursday. Finally, Leerink Partners set a $152.00 price objective on shares of Encompass Health in a research report on Friday, May 22nd. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Encompass Health presently has an average rating of “Moderate Buy” and an average target price of $146.57.

Encompass Health Company Profile

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.