Leerink Partnrs Issues Optimistic Estimate for EHC Earnings

Key Points

• Leerink Partners has raised its FY2025 earnings per share estimate for Encompass Health from $4.95 to $5.25, indicating positive sentiment toward the company’s financial outlook.
• Encompass Health exceeded earnings expectations in its latest report, posting $1.40 EPS compared to the consensus estimate of $1.20.
• The company has announced an increase in its quarterly dividend from $0.17 to $0.19 per share, with a record date of October 1st.

Encompass Health Corporation (NYSE:EHC - Free Report) - Equities research analysts at Leerink Partnrs boosted their FY2025 earnings per share estimates for shares of Encompass Health in a research note issued on Tuesday, August 5th. Leerink Partnrs analyst W. Mayo now anticipates that the company will earn $5.25 per share for the year, up from their previous forecast of $4.95. 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 Q2 2026 earnings at $1.50 EPS, Q3 2026 earnings at $1.32 EPS and FY2026 earnings at $5.81 EPS.

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

EHC has been the topic of several other research reports. Truist Financial restated a "buy" rating and issued a $135.00 price target (up previously from $116.00) on shares of Encompass Health in a research report on Monday, April 28th. Barclays increased their target price on shares of Encompass Health from $118.00 to $129.00 and gave the company an "overweight" rating in a research note on Friday, April 25th. Royal Bank Of Canada boosted their target price on Encompass Health from $110.00 to $125.00 and gave the company an "outperform" rating in a research report on Monday, April 28th. Wall Street Zen lowered shares of Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. Finally, UBS Group lifted their price target on shares of Encompass Health from $130.00 to $140.00 and gave the company a "buy" rating in a research note on Wednesday. Seven research analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $133.17.

Encompass Health Stock Up 2.3%

EHC opened at $116.54 on Thursday. The firm's fifty day moving average is $116.50 and its 200 day moving average is $108.36. Encompass Health has a fifty-two week low of $84.63 and a fifty-two week high of $123.13. The stock has a market cap of $11.75 billion, a price-to-earnings ratio of 22.81, a price-to-earnings-growth ratio of 2.19 and a beta of 0.86. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.06 and a current ratio of 1.06.

Hedge Funds Weigh In On Encompass Health

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. WPG Advisers LLC acquired a new stake in shares of Encompass Health during the 1st quarter valued at approximately $27,000. Colonial Trust Co SC purchased a new position in Encompass Health during the 4th quarter valued at about $29,000. Transce3nd LLC acquired a new position in shares of Encompass Health during the 4th quarter worth approximately $40,000. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Encompass Health by 749.0% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 416 shares of the company's stock valued at $42,000 after acquiring an additional 367 shares in the last quarter. Finally, Parkside Financial Bank & Trust boosted its stake in shares of Encompass Health by 179.5% during the second quarter. Parkside Financial Bank & Trust now owns 478 shares of the company's stock valued at $59,000 after acquiring an additional 307 shares during the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Encompass Health

In other news, CEO Mark J. Tarr sold 118,384 shares of the stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $121.53, for a total value of $14,387,207.52. Following the transaction, the chief executive officer owned 527,070 shares in the company, valued at approximately $64,054,817.10. This represents a 18.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 2.00% of the company's stock.

Encompass Health Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st will be paid 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 0.7%. Encompass Health's payout ratio is currently 14.05%.

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.

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