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

Encompass Health (NYSE:EHC) posted its earnings results on Wednesday. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.07, FiscalAI reports. The firm 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% compared to the same quarter last year. During the same period in the previous year, the business posted $1.40 EPS. Encompass Health updated its FY 2026 guidance to 6.020-6.250 EPS.

Encompass Health Price Performance

EHC stock traded up $0.05 during trading on Wednesday, hitting $110.55. The stock had a trading volume of 1,306,323 shares, compared to its average volume of 868,107. Encompass Health has a twelve month low of $92.77 and a twelve 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. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.17 and a quick ratio of 1.17. The stock has a market capitalization of $10.97 billion, a P/E ratio of 18.46, a PEG ratio of 2.41 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. Investors of record on Thursday, October 1st will be issued a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s payout ratio is presently 12.69%.

Insider Activity

In other news, EVP Patrick William Tuer sold 682 shares of Encompass Health 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 sale, 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 1.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Encompass Health

A number of hedge funds have recently modified their holdings of the business. Virtu Financial LLC purchased a new position in Encompass Health in the 4th quarter worth approximately $371,000. T. Rowe Price Investment Management Inc. boosted its stake in Encompass Health by 27.2% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,722,887 shares of the company’s stock worth $289,008,000 after buying an additional 581,812 shares during the last quarter. Corient Private Wealth LLC grew its holdings in Encompass Health by 154.7% in the 4th quarter. Corient Private Wealth LLC now owns 50,460 shares of the company’s stock valued at $5,356,000 after buying an additional 30,651 shares in the last quarter. Beacon Pointe Advisors LLC acquired a new stake in shares of Encompass Health in the 4th quarter worth $2,158,000. Finally, EP Wealth Advisors LLC acquired a new position in shares of Encompass Health during the 4th quarter valued at about $279,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on EHC. Barclays decreased their price objective on shares of Encompass Health from $153.00 to $140.00 and set an “overweight” rating for the company in a research report on Tuesday, May 5th. Leerink Partners set a $152.00 price target 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. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Finally, TD Cowen assumed coverage on Encompass Health in a research report on Thursday, May 28th. They issued a “buy” rating and a $125.00 price objective for the company. One research 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’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus 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.