Encompass Health (NYSE:EHC) Updates FY 2025 Earnings Guidance

Key Points

• Encompass Health has updated its FY 2025 earnings guidance, forecasting earnings per share between $5.120 and $5.340, slightly below the consensus estimate of $5.270.
• The company announced a quarterly dividend increase to $0.19 per share, up from $0.17, reflecting its strong financial performance.
• Analysts maintain a positive outlook on the stock, with an average rating of "Buy" and a consensus price target of $138.43.

Encompass Health (NYSE:EHC - Get Free Report) updated its FY 2025 earnings guidance on Tuesday. The company provided earnings per share guidance of 5.120-5.340 for the period, compared to the consensus earnings per share estimate of 5.270. The company issued revenue guidance of $5.9 billion-$6.0 billion, compared to the consensus revenue estimate of $5.9 billion.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Bank of America boosted their price objective on Encompass Health from $145.00 to $160.00 and gave the company a "buy" rating in a report on Wednesday, September 10th. UBS Group upped their price target on Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Wall Street Zen downgraded Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. Stephens upgraded Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price target on the stock in a report on Thursday, June 5th. Finally, Truist Financial upped their price target on Encompass Health from $135.00 to $140.00 and gave the stock a "buy" rating in a report on Thursday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating and seven have assigned a Buy rating to the stock. Based on data from MarketBeat.com, Encompass Health has an average rating of "Buy" and a consensus target price of $138.43.

Encompass Health Stock Up 1.7%

Shares of Encompass Health stock opened at $126.12 on Tuesday. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.76. The firm has a market cap of $12.70 billion, a P/E ratio of 24.68, a P/E/G ratio of 2.17 and a beta of 0.92. Encompass Health has a fifty-two week low of $87.85 and a fifty-two week high of $127.15. The business has a 50-day moving average price of $118.25 and a 200 day moving average price of $113.99.

Encompass Health (NYSE:EHC - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The company reported $1.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.20 by $0.20. The company had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.43 billion. Encompass Health had a net margin of 9.22% and a return on equity of 17.83%. The company's revenue for the quarter was up 12.0% on a year-over-year basis. During the same period last year, the firm posted $1.11 EPS. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. On average, sell-side analysts forecast that Encompass Health will post 4.8 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, October 1st will be given a dividend of $0.19 per share. This is a boost from Encompass Health's previous quarterly dividend of $0.17. This represents a $0.76 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Wednesday, October 1st. Encompass Health's payout ratio is presently 13.31%.

Insider Activity

In other news, EVP Patrick William Tuer sold 1,020 shares of the business's stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $123.59, for a total transaction of $126,061.80. Following the completion of the transaction, the executive vice president directly owned 18,846 shares in the company, valued at approximately $2,329,177.14. The trade was a 5.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Royal Bank of Canada raised its stake in Encompass Health by 21.5% during the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company's stock valued at $8,960,000 after purchasing an additional 15,677 shares during the period. Millennium Management LLC raised its stake in Encompass Health by 38.4% during the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company's stock valued at $9,338,000 after purchasing an additional 25,574 shares during the period. Caxton Associates LLP acquired a new stake in Encompass Health during the 1st quarter valued at $259,000. Walleye Capital LLC raised its stake in Encompass Health by 667.6% during the 2nd quarter. Walleye Capital LLC now owns 6,522 shares of the company's stock valued at $800,000 after purchasing an additional 7,671 shares during the period. Finally, Gamco Investors INC. ET AL acquired a new stake in Encompass Health during the 2nd quarter valued at $588,000. Institutional investors own 97.25% of the company's stock.

Encompass Health Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.