Q3 EPS Estimate for Encompass Health Lowered by Analyst

Key Points

• Zacks Research lowered Encompass Health’s Q3 2026 EPS estimate to $1.35 from $1.36, while its FY2026 forecast of $6.03 remains below the analyst consensus of $6.09.
• Encompass Health recently exceeded quarterly expectations, reporting $1.55 EPS versus the $1.48 consensus and $1.60 billion in revenue, up 9.6% year over year. Management’s FY2026 EPS guidance is $6.02–$6.25.
• The company increased its quarterly dividend to $0.21 per share from $0.19, implying an annualized dividend of $0.84 and a 0.7% yield; analysts maintain a consensus “Buy” rating with an average price target of $148.71.

Encompass Health Corporation (NYSE:EHC - Free Report) - Zacks Research lowered their Q3 2026 EPS estimates for Encompass Health in a report issued on Tuesday, August 25th. Zacks Research analyst Team now expects that the company will post earnings of $1.35 per share for the quarter, down from their previous forecast of $1.36. The consensus estimate for Encompass Health's current full-year earnings is $6.09 per share. Zacks Research also issued estimates for Encompass Health's Q4 2026 earnings at $1.53 EPS, FY2026 earnings at $6.03 EPS, Q1 2027 earnings at $1.65 EPS, Q2 2027 earnings at $1.64 EPS, Q3 2027 earnings at $1.49 EPS, FY2027 earnings at $6.42 EPS, Q1 2028 earnings at $1.77 EPS, Q2 2028 earnings at $1.87 EPS and FY2028 earnings at $7.18 EPS.

Encompass Health (NYSE:EHC - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The business had revenue of $1.60 billion during the quarter, compared to analysts' expectations of $1.57 billion. During the same quarter in the prior year, the company posted $1.40 EPS. The firm's revenue for the quarter was up 9.6% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS.

EHC has been the topic of a number of other research reports. TD Cowen boosted their price target on Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a report on Monday, August 10th. Leerink Partners set a $152.00 price objective on Encompass Health in a research report on Friday, May 22nd. Weiss Ratings raised Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, August 12th. UBS Group raised their price target on Encompass Health from $150.00 to $155.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Finally, Wall Street Zen upgraded shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Sunday, August 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Encompass Health has a consensus rating of "Buy" and an average target price of $148.71.

Encompass Health Stock Performance

Shares of NYSE:EHC opened at $120.18 on Wednesday. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. The company has a 50-day moving average price of $111.85 and a 200-day moving average price of $106.83. The company has a market cap of $11.86 billion, a price-to-earnings ratio of 19.57, a price-to-earnings-growth ratio of 2.45 and a beta of 0.72. Encompass Health has a 12 month low of $92.77 and a 12 month high of $127.99.

Encompass Health Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be given a dividend of $0.21 per share. This is a boost from Encompass Health's previous quarterly dividend of $0.19. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, October 1st. Encompass Health's dividend payout ratio is presently 12.38%.

Insider Buying and Selling at Encompass Health

In other news, CEO Mark J. Tarr sold 173,148 shares of the business's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the sale, the chief executive officer owned 267,814 shares in the company, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP John Patrick Darby sold 8,906 shares of the company's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the completion of the sale, the executive vice president directly owned 75,041 shares in the company, valued at $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Encompass Health

A number of hedge funds and other institutional investors have recently bought and sold shares of EHC. EP Wealth Advisors LLC lifted its holdings in Encompass Health by 2.4% during the second quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company's stock valued at $453,000 after purchasing an additional 88 shares in the last quarter. Gamco Investors INC. ET AL raised its position in shares of Encompass Health by 2.0% during the 1st quarter. Gamco Investors INC. ET AL now owns 4,813 shares of the company's stock worth $466,000 after purchasing an additional 94 shares during the last quarter. Gibson Capital LLC lifted its stake in Encompass Health by 4.3% in the 1st quarter. Gibson Capital LLC now owns 2,431 shares of the company's stock valued at $235,000 after buying an additional 101 shares in the last quarter. Leuthold Group LLC boosted its holdings in Encompass Health by 0.3% in the 4th quarter. Leuthold Group LLC now owns 31,168 shares of the company's stock worth $3,308,000 after buying an additional 104 shares during the last quarter. Finally, Covestor Ltd raised its holdings in shares of Encompass Health by 24.4% during the fourth quarter. Covestor Ltd now owns 540 shares of the company's stock valued at $57,000 after acquiring an additional 106 shares during the last quarter. Hedge funds and other institutional investors own 97.25% of the company's stock.

Trending Headlines about Encompass Health

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Zacks Research raised its FY2026 EPS estimate to $6.03 from $5.96, FY2027 to $6.42 from $6.35, and FY2028 to $7.18 from $7.16. The firm also increased estimates for Q1 2027, Q2 2027, Q3 2027 and Q2 2028, signaling expectations for continued earnings growth.
• Positive Sentiment: A Zacks analysis highlighted Encompass Health’s capacity expansion, new facilities and North Carolina development pipeline as potential drivers of 6%–8% multi-year discharge growth. How EHC's Capacity Expansion Fuels a Multi-Year Growth Runway
• Neutral Sentiment: Zacks maintained estimates of $1.35 EPS for Q3 2026 and $1.53 for Q4 2026, while its FY2026 forecast of $6.03 remains slightly below the broader analyst consensus of $6.09.
• Neutral Sentiment: Recent Zacks style-score commentary continues to identify EHC as a potentially attractive momentum and value stock, supporting the longer-term investment case but adding limited new company-specific information. Why Encompass Health Is a Top Momentum Stock for the Long-Term
• Negative Sentiment: Zacks trimmed its Q3 2026 EPS estimate to $1.35 from $1.36, Q4 2026 to $1.53 from $1.55, and Q1 2028 to $1.77 from $1.80. These near-term reductions suggest some caution around upcoming quarterly results.

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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