Zacks Research Lifts Earnings Estimates for Encompass Health

Key Points

• Zacks Research has increased its Q3 2025 earnings per share (EPS) estimate for Encompass Health to $1.17, up from a previous forecast of $1.15.
• Encompass Health reported a 12% year-over-year revenue growth in their last quarter, with earnings of $1.40 per share, exceeding estimates by $0.20.
• The company has raised its quarterly dividend from $0.17 to $0.19 per share, reflecting positive financial performance and a commitment to returning value to shareholders.

Encompass Health Corporation (NYSE:EHC - Free Report) - Stock analysts at Zacks Research boosted their Q3 2025 EPS estimates for shares of Encompass Health in a note issued to investors on Monday, August 18th. Zacks Research analyst Team now expects that the company will earn $1.17 per share for the quarter, up from their prior forecast of $1.15. The consensus estimate for Encompass Health's current full-year earnings is $4.80 per share.

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, beating 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 business had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.43 billion. During the same period last year, the business posted $1.11 EPS. Encompass Health's revenue was up 12.0% on a year-over-year basis. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS.

Several other equities research analysts also recently issued reports on the stock. Stephens upgraded shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 target price for the company in a research note on Thursday, June 5th. Royal Bank Of Canada raised their target price on shares of Encompass Health from $110.00 to $125.00 and gave the company an "outperform" rating in a research note on Monday, April 28th. KeyCorp raised their target price on shares of Encompass Health from $122.00 to $135.00 and gave the company an "overweight" rating in a research note on Tuesday, May 27th. Wall Street Zen cut shares of Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. Finally, Truist Financial increased their price target on shares of Encompass Health from $135.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, August 14th. One investment analyst has rated the stock with a Strong Buy rating and six have given a Buy rating to the stock. According to data from MarketBeat, Encompass Health has an average rating of "Buy" and an average price target of $134.00.

Encompass Health Trading Up 1.6%

Shares of NYSE:EHC opened at $122.1270 on Wednesday. Encompass Health has a 52-week low of $87.85 and a 52-week high of $123.13. The company has a market capitalization of $12.30 billion, a P/E ratio of 23.90, a price-to-earnings-growth ratio of 2.10 and a beta of 0.86. The company has a 50-day simple moving average of $116.19 and a 200 day simple moving average of $109.87. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.06 and a current ratio of 1.06.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. OneDigital Investment Advisors LLC bought a new position in shares of Encompass Health during the first quarter worth approximately $263,000. GAMMA Investing LLC increased 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 acquiring an additional 419 shares during the last quarter. Sequoia Financial Advisors LLC increased 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 acquiring an additional 172 shares during the last quarter. Cambridge Investment Research Advisors Inc. increased 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 acquiring an additional 2,218 shares during the last quarter. Finally, Fifth Third Bancorp boosted its position 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 in the last quarter. 97.25% of the stock is owned by institutional investors.

Encompass Health Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, October 1st will be issued 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 of this dividend is Wednesday, October 1st. Encompass Health's payout ratio is 14.87%.

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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