Q3 EPS Estimate for Encompass Health Boosted by Analyst

Key Points

• Analysts at Leerink Partners raised their Q3 2025 EPS estimate for Encompass Health to $1.20, up from $1.11, while the full-year earnings estimate is at $4.80 per share.
• The company declared a quarterly dividend of $0.19, representing an annualized dividend of $0.76, which is an increase from the previous $0.17 quarterly dividend.
• Encompass Health is currently rated as a "Buy" by the majority of analysts, with an average price target of $133.17, reflecting positive sentiment towards the stock.

Encompass Health Corporation (NYSE:EHC - Free Report) - Stock analysts at Leerink Partnrs boosted their Q3 2025 EPS estimates for shares of Encompass Health in a report released on Tuesday, August 5th. Leerink Partnrs analyst W. Mayo now anticipates that the company will post earnings of $1.20 per share for the quarter, up from their previous estimate of $1.11. The consensus estimate for Encompass Health's current full-year earnings is $4.80 per share. Leerink Partnrs also issued estimates for Encompass Health's Q4 2025 earnings at $1.29 EPS, Q4 2026 earnings at $1.43 EPS, FY2027 earnings at $6.35 EPS and FY2028 earnings at $6.86 EPS.

EHC has been the topic of several other reports. UBS Group upped their price objective on shares of Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a research note on Wednesday. Royal Bank Of Canada upped their price objective on shares of Encompass Health from $110.00 to $125.00 and gave the stock an "outperform" rating in a research note on Monday, April 28th. Stephens raised shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price objective on the stock in a research note on Thursday, June 5th. Barclays upped their price objective on shares of Encompass Health from $118.00 to $129.00 and gave the stock an "overweight" rating in a research note on Friday, April 25th. Finally, KeyCorp upped their price objective on shares of Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 27th. Seven analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $133.17.

Encompass Health Price Performance

Encompass Health stock traded up $0.91 during trading hours on Friday, hitting $117.42. 780,635 shares of the stock were exchanged, compared to its average volume of 1,204,908. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.06 and a current ratio of 1.06. The stock has a market capitalization of $11.83 billion, a P/E ratio of 22.98, a P/E/G ratio of 2.05 and a beta of 0.86. Encompass Health has a 12 month low of $85.55 and a 12 month high of $123.13. The business's 50-day moving average is $116.36 and its two-hundred day moving average is $108.76.

Encompass Health (NYSE:EHC - Get Free Report) last issued its earnings results on Monday, August 4th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.20. The business 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 firm's revenue was up 12.0% on a year-over-year basis. During the same period in the previous year, the business earned $1.11 EPS.

Encompass Health Increases Dividend

The business also recently announced 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. The ex-dividend date is Wednesday, October 1st. This is a positive change from Encompass Health's previous quarterly dividend of $0.17. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.6%. Encompass Health's dividend payout ratio (DPR) is currently 14.87%.

Insider Activity

In other news, CEO Mark J. Tarr sold 118,384 shares of the company's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $121.53, for a total transaction of $14,387,207.52. Following the transaction, the chief executive officer directly owned 527,070 shares in the company, valued at approximately $64,054,817.10. This represents a 18.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Encompass Health

Several large investors have recently bought and sold shares of EHC. LPL Financial LLC lifted its holdings in Encompass Health by 8.8% in the fourth quarter. LPL Financial LLC now owns 35,558 shares of the company's stock valued at $3,284,000 after buying an additional 2,869 shares during the period. Russell Investments Group Ltd. lifted its holdings in Encompass Health by 31.5% in the fourth quarter. Russell Investments Group Ltd. now owns 227,643 shares of the company's stock valued at $21,023,000 after buying an additional 54,536 shares during the period. Federated Hermes Inc. lifted its holdings in Encompass Health by 13.7% in the fourth quarter. Federated Hermes Inc. now owns 11,318 shares of the company's stock valued at $1,045,000 after buying an additional 1,367 shares during the period. FMR LLC lifted its holdings in Encompass Health by 0.8% in the fourth quarter. FMR LLC now owns 1,973,846 shares of the company's stock valued at $182,285,000 after buying an additional 15,831 shares during the period. Finally, Cerity Partners LLC lifted its holdings in Encompass Health by 76.9% in the fourth quarter. Cerity Partners LLC now owns 5,837 shares of the company's stock valued at $547,000 after buying an additional 2,537 shares during the period. 97.25% of the stock is currently owned by institutional investors and hedge funds.

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.