Zacks Research Issues Optimistic Outlook for EHC Earnings

Encompass Health Co. (NYSE:EHC) – Zacks Research boosted their Q4 2025 earnings per share estimates for Encompass Health in a report issued on Wednesday, May 7th. Zacks Research analyst R. Sipani now expects that the company will post earnings of $1.25 per share for the quarter, up from their prior forecast of $1.20. The consensus estimate for Encompass Health’s current full-year earnings is $4.80 per share. Zacks Research also issued estimates for Encompass Health’s Q2 2026 earnings at $1.32 EPS, Q3 2026 earnings at $1.19 EPS, Q4 2026 earnings at $1.38 EPS, Q1 2027 earnings at $1.39 EPS and FY2027 earnings at $5.60 EPS.

Encompass Health (NYSE:EHC) last released its earnings results on Thursday, April 24th. The company reported $1.37 earnings per share for the quarter, beating the consensus estimate of $1.19 by $0.18. The business had revenue of $1.46 billion during the quarter, compared to analysts’ expectations of $1.43 billion. Encompass Health had a net margin of 8.48% and a return on equity of 17.56%. The firm’s revenue was up 10.6% on a year-over-year basis. During the same period last year, the business earned $1.12 earnings per share.

Other equities research analysts also recently issued research reports about the company. Royal Bank of Canada raised their price target on Encompass Health from $110.00 to $125.00 and gave the company an “outperform” rating in a report on Monday, April 28th. Barclays increased their price target on shares of Encompass Health from $118.00 to $129.00 and gave the company an “overweight” rating in a report on Friday, April 25th. William Blair reaffirmed an “outperform” rating on shares of Encompass Health in a research report on Friday, February 7th. Truist Financial reissued a “buy” rating and issued a $135.00 target price (up previously from $116.00) on shares of Encompass Health in a research report on Monday, April 28th. Finally, KeyCorp increased their price target on Encompass Health from $120.00 to $122.00 and gave the stock an “overweight” rating in a research report on Friday, April 25th. One equities research analyst has rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, Encompass Health presently has a consensus rating of “Buy” and an average target price of $120.86.

Encompass Health Trading Up 0.5 %

Shares of NYSE:EHC opened at $116.45 on Friday. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.04 and a current ratio of 1.05. Encompass Health has a 52-week low of $82.74 and a 52-week high of $118.27. The company has a 50-day simple moving average of $103.44 and a 200 day simple moving average of $99.93. The company has a market capitalization of $11.74 billion, a P/E ratio of 26.11, a price-to-earnings-growth ratio of 2.31 and a beta of 0.91.

Encompass Health Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 15th. Stockholders of record on Tuesday, July 1st will be paid a $0.17 dividend. The ex-dividend date is Tuesday, July 1st. This represents a $0.68 annualized dividend and a dividend yield of 0.58%. Encompass Health’s payout ratio is 14.05%.

Insider Transactions at Encompass Health

In other Encompass Health news, insider Elissa Joy Charbonneau sold 4,279 shares of the stock in a transaction dated Tuesday, May 6th. The stock was sold at an average price of $116.61, for a total value of $498,974.19. Following the completion of the transaction, the insider now directly owns 11,958 shares in the company, valued at approximately $1,394,422.38. This trade represents a 26.35 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP John Patrick Darby sold 10,000 shares of Encompass Health stock in a transaction that occurred on Tuesday, April 29th. The stock was sold at an average price of $114.79, for a total transaction of $1,147,900.00. Following the sale, the executive vice president now owns 79,710 shares in the company, valued at approximately $9,149,910.90. This represents a 11.15 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 19,321 shares of company stock valued at $2,142,452. Corporate insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

A number of hedge funds have recently made changes to their positions in EHC. Charles Schwab Investment Management Inc. raised its holdings in Encompass Health by 0.7% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 644,764 shares of the company’s stock worth $59,544,000 after purchasing an additional 4,345 shares during the last quarter. Merit Financial Group LLC acquired a new stake in Encompass Health during the fourth quarter worth approximately $374,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in Encompass Health in the fourth quarter worth approximately $4,160,000. MassMutual Private Wealth & Trust FSB boosted its holdings in shares of Encompass Health by 87.8% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 293 shares of the company’s stock worth $27,000 after buying an additional 137 shares in the last quarter. Finally, US Bancorp DE grew its position in shares of Encompass Health by 9.6% during the 4th quarter. US Bancorp DE now owns 1,380 shares of the company’s stock worth $127,000 after buying an additional 121 shares during the period. 97.25% of the stock is currently owned by institutional investors.

About Encompass Health

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.