Encompass Health (NYSE:EHC) Posts Earnings Results, Beats Expectations By $0.17 EPS

Encompass Health (NYSE:EHC) released its quarterly earnings results on Thursday. The company reported $1.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.29 by $0.17, FiscalAI reports. The firm had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.54 billion. Encompass Health had a return on equity of 17.84% and a net margin of 9.33%.The firm’s quarterly revenue was up 9.9% compared to the same quarter last year. During the same quarter last year, the business posted $1.17 EPS. Encompass Health updated its FY 2026 guidance to 5.810-6.100 EPS.

Encompass Health Price Performance

Shares of NYSE:EHC traded up $10.32 during midday trading on Friday, hitting $109.88. 1,191,855 shares of the stock were exchanged, compared to its average volume of 1,292,421. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.76. The company has a 50 day moving average price of $104.47 and a 200-day moving average price of $114.44. Encompass Health has a twelve month low of $92.53 and a twelve month high of $127.99. The stock has a market cap of $11.06 billion, a P/E ratio of 20.85, a PEG ratio of 1.54 and a beta of 0.73.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd lifted 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 buying an additional 362 shares during the period. Danske Bank A S purchased a new stake in shares of Encompass Health in the third quarter valued at $76,000. Employees Retirement System of Texas increased its stake in Encompass Health by 105.6% in the third quarter. Employees Retirement System of Texas now owns 956 shares of the company’s stock valued at $121,000 after purchasing an additional 491 shares during the last quarter. Headlands Technologies LLC lifted its position in Encompass Health by 5,474.1% during the second quarter. Headlands Technologies LLC now owns 1,505 shares of the company’s stock worth $185,000 after buying an additional 1,478 shares during the period. Finally, Advisory Services Network LLC acquired a new stake in Encompass Health in the 3rd quarter worth about $209,000. Institutional investors and hedge funds own 97.25% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. Zacks Research cut shares of Encompass Health from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Barclays increased their price objective on Encompass Health from $150.00 to $153.00 and gave the stock an “overweight” rating in a research report on Friday. Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. Finally, Raymond James Financial upgraded shares of Encompass Health to a “strong-buy” rating in a research report on Friday, October 31st. Two equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $143.29.

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.