Encompass Health (NYSE:EHC) Posts Earnings Results, Beats Estimates By $0.07 EPS

Encompass Health (NYSE:EHC) announced its quarterly earnings data on Wednesday. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07, FiscalAI reports. The company had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.57 billion. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The business’s revenue was up 9.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.40 EPS. Encompass Health updated its FY 2026 guidance to 6.020-6.250 EPS.

Encompass Health Price Performance

NYSE:EHC opened at $110.55 on Thursday. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.76. The firm has a market cap of $10.97 billion, a PE ratio of 18.46, a price-to-earnings-growth ratio of 2.41 and a beta of 0.72. Encompass Health has a 12 month low of $92.77 and a 12 month high of $127.99. The company’s 50-day moving average price is $106.14 and its two-hundred day moving average price is $104.27.

Encompass Health Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be given a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 0.8%. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date is Thursday, October 1st. Encompass Health’s dividend payout ratio (DPR) is presently 14.02%.

Insider Activity

In other news, EVP Patrick William Tuer sold 682 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $104.56, for a total value of $71,309.92. Following the transaction, the executive vice president directly owned 24,755 shares of the company’s stock, valued at $2,588,382.80. The trade was a 2.68% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

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

Wall Street Analysts Forecast Growth

EHC has been the topic of a number of analyst reports. Barclays reissued an “overweight” rating on shares of Encompass Health in a research note on Thursday. TD Cowen assumed coverage on Encompass Health in a report on Thursday, May 28th. They set a “buy” rating and a $125.00 price objective on the stock. Leerink Partners set a $152.00 price objective on Encompass Health in a research note on Friday, May 22nd. Weiss Ratings cut Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, June 26th. Finally, Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Encompass Health currently has an average rating of “Moderate Buy” and an average price target of $143.86.

About Encompass Health

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.