William Blair Issues Positive Forecast for EHC Earnings

Key Points

• William Blair raised its Q4 2025 EPS estimate for Encompass Health to $1.30 from $1.29, while the consensus estimate for the full-year earnings stands at $4.80 per share.
• Encompass Health reported a quarterly earnings of $1.40 per share, exceeding the consensus estimate of $1.20, and recorded a revenue of $1.46 billion, which was higher than the expected $1.43 billion.
• The company recently increased its quarterly dividend from $0.17 to $0.19, with a yield of 0.6%, reflecting positive growth in its dividend payout ratio.

Encompass Health Corporation (NYSE:EHC - Free Report) - William Blair lifted their Q4 2025 EPS estimates for Encompass Health in a note issued to investors on Wednesday, August 6th. William Blair analyst J. Haase now anticipates that the company will post earnings per share of $1.30 for the quarter, up from their prior forecast of $1.29. The consensus estimate for Encompass Health's current full-year earnings is $4.80 per share.

Other analysts also recently issued research reports about the stock. UBS Group raised their price target on shares of Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Stephens raised shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price target for the company in a research report on Thursday, June 5th. Barclays raised their price target on shares of Encompass Health from $118.00 to $129.00 and gave the stock an "overweight" rating in a research report on Friday, April 25th. Wall Street Zen downgraded shares of Encompass Health from a "strong-buy" rating to a "buy" rating in a research report on Friday, June 6th. Finally, Truist Financial set a $140.00 price target on shares of Encompass Health and gave the stock a "buy" rating in a research report on Thursday. Seven investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Encompass Health presently has an average rating of "Buy" and an average target price of $134.00.

Encompass Health Stock Down 0.2%

Shares of EHC traded down $0.27 during mid-day trading on Monday, reaching $119.38. 85,954 shares of the stock traded hands, compared to its average volume of 818,064. The firm has a market cap of $12.02 billion, a price-to-earnings ratio of 23.35, a P/E/G ratio of 2.08 and a beta of 0.86. The stock has a fifty day simple moving average of $116.16 and a 200 day simple moving average of $109.30. Encompass Health has a 12-month low of $87.85 and a 12-month high of $123.13. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC - Get Free Report) last posted its quarterly earnings data on Monday, August 4th. The company reported $1.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.20 by $0.20. The company had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.43 billion. Encompass Health had a net margin of 9.22% and a return on equity of 17.83%. The business's quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter last year, the firm posted $1.11 earnings per share.

Institutional Investors Weigh In On Encompass Health

Hedge funds have recently added to or reduced their stakes in the stock. OneDigital Investment Advisors LLC bought a new stake in Encompass Health in the first quarter valued at $263,000. GAMMA Investing LLC lifted its stake in Encompass Health by 21.5% in the first quarter. GAMMA Investing LLC now owns 2,366 shares of the company's stock valued at $240,000 after buying an additional 419 shares during the last quarter. Sequoia Financial Advisors LLC lifted its stake in Encompass Health by 6.7% in the first quarter. Sequoia Financial Advisors LLC now owns 2,727 shares of the company's stock valued at $276,000 after buying an additional 172 shares during the last quarter. Cambridge Investment Research Advisors Inc. lifted its stake in Encompass Health by 30.1% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 9,597 shares of the company's stock valued at $972,000 after buying an additional 2,218 shares during the last quarter. Finally, Fifth Third Bancorp lifted its stake in Encompass Health by 88.7% in the first quarter. Fifth Third Bancorp now owns 4,290 shares of the company's stock valued at $434,000 after buying an additional 2,017 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other Encompass Health news, CEO Mark J. Tarr sold 118,384 shares of Encompass Health stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $121.53, for a total value of $14,387,207.52. Following the completion of the transaction, the chief executive officer owned 527,070 shares of the company's stock, valued at $64,054,817.10. The trade was a 18.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. 2.00% of the stock is currently owned by corporate insiders.

Encompass Health Increases Dividend

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

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.