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

Key Points

• Encompass Health beat quarterly expectations: EPS came in at $1.55 versus the $1.48 consensus, while revenue rose 9.6% year over year to $1.60 billion, ahead of estimates.
• The company updated its fiscal 2026 EPS guidance to $6.02–$6.25 and raised its quarterly dividend to $0.21 from $0.19, representing an annualized yield of about 0.8%.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $143.86, compared with the stock’s reported trading price of $110.55.

Encompass Health (NYSE:EHC - Get Free Report) posted its quarterly earnings results 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. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same period in the prior year, the business earned $1.40 earnings per share. The business's revenue was up 9.6% compared to the same quarter last year. Encompass Health updated its FY 2026 guidance to 6.020-6.250 EPS.

Encompass Health Trading Up 0.0%

Encompass Health stock traded up $0.05 during mid-day trading on Wednesday, hitting $110.55. The company's stock had a trading volume of 1,306,323 shares, compared to its average volume of 868,107. The stock's fifty day moving average is $106.01 and its two-hundred day moving average is $104.22. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. The firm has a market capitalization 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 1 year low of $92.77 and a 1 year high of $127.99.

Encompass Health Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be given a $0.21 dividend. 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 annualized dividend and a yield of 0.8%. Encompass Health's dividend payout ratio (DPR) is currently 12.69%.

Wall Street Analysts Forecast Growth

EHC has been the topic of a number of recent research reports. Leerink Partners set a $152.00 price objective on Encompass Health in a research note on Friday, May 22nd. Wall Street Zen raised Encompass Health from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. TD Cowen began coverage on Encompass Health in a report on Thursday, May 28th. They set a "buy" rating and a $125.00 price target on the stock. Barclays lowered their price target on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a research report on Tuesday, May 5th. Finally, Weiss Ratings cut shares of Encompass Health from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, June 26th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Encompass Health presently has an average rating of "Moderate Buy" and a consensus price target of $143.86.

Insider Buying and Selling

In other news, EVP Patrick William Tuer sold 682 shares of the company's stock in a transaction 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 owned 24,755 shares of the company's stock, valued at $2,588,382.80. This represents a 2.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.80% of the stock is owned by corporate insiders.

Institutional Trading of Encompass Health

Institutional investors and hedge funds have recently bought and sold shares of the stock. EP Wealth Advisors LLC boosted its stake in Encompass Health by 2.4% during the second quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company's stock worth $453,000 after buying an additional 88 shares during the period. Johnson Investment Counsel Inc. raised its stake in shares of Encompass Health by 5.6% in the 4th quarter. Johnson Investment Counsel Inc. now owns 2,364 shares of the company's stock valued at $251,000 after acquiring an additional 126 shares during the period. Ancora Advisors LLC raised its stake in shares of Encompass Health by 0.3% in the 3rd quarter. Ancora Advisors LLC now owns 47,688 shares of the company's stock valued at $6,057,000 after acquiring an additional 160 shares during the period. Vanguard Personalized Indexing Management LLC lifted its holdings in shares of Encompass Health by 1.0% in the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 16,034 shares of the company's stock worth $1,702,000 after acquiring an additional 163 shares during the last quarter. Finally, Public Employees Retirement System of Ohio boosted its position in shares of Encompass Health by 0.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 33,450 shares of the company's stock worth $4,249,000 after purchasing an additional 187 shares during the period. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

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.

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