What is Zacks Research’s Forecast for EHC FY2024 Earnings?

Encompass Health Co. (NYSE:EHC) – Investment analysts at Zacks Research boosted their FY2024 earnings per share estimates for Encompass Health in a research report issued to clients and investors on Monday, November 11th. Zacks Research analyst Z. Masood now forecasts that the company will post earnings per share of $4.25 for the year, up from their prior forecast of $4.14. The consensus estimate for Encompass Health’s current full-year earnings is $4.29 per share. Zacks Research also issued estimates for Encompass Health’s Q1 2025 earnings at $1.25 EPS, Q2 2025 earnings at $1.22 EPS, Q3 2025 earnings at $1.14 EPS, FY2025 earnings at $4.75 EPS, Q2 2026 earnings at $1.41 EPS and Q3 2026 earnings at $1.24 EPS.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Monday, October 28th. The company reported $1.03 EPS for the quarter, beating the consensus estimate of $0.94 by $0.09. The company had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. Encompass Health had a net margin of 8.10% and a return on equity of 17.60%. The firm’s revenue was up 11.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.86 earnings per share.

EHC has been the topic of a number of other research reports. Truist Financial restated a “buy” rating and set a $116.00 price target (up previously from $108.00) on shares of Encompass Health in a research note on Wednesday, October 30th. Barclays upped their price target on shares of Encompass Health from $109.00 to $116.00 and gave the company an “overweight” rating in a research report on Tuesday, October 29th. KeyCorp lifted their price objective on shares of Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a research note on Tuesday, October 29th. UBS Group increased their target price on shares of Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research note on Wednesday, September 25th. Finally, Royal Bank of Canada upped their price objective on Encompass Health from $105.00 to $110.00 and gave the company an “outperform” rating in a research note on Wednesday, October 30th. Nine research analysts have rated the stock with a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $107.11.

Encompass Health Stock Performance

NYSE EHC opened at $102.62 on Tuesday. The company has a fifty day moving average of $95.71 and a two-hundred day moving average of $89.84. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.04 and a quick ratio of 1.35. Encompass Health has a 1 year low of $63.01 and a 1 year high of $104.55. The company has a market capitalization of $10.34 billion, a PE ratio of 24.94, a P/E/G ratio of 1.36 and a beta of 0.88.

Encompass Health Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Thursday, January 2nd will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 0.66%. The ex-dividend date of this dividend is Thursday, January 2nd. Encompass Health’s payout ratio is 16.43%.

Encompass Health announced that its board has approved a share buyback program on Wednesday, July 24th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 5.4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Encompass Health

Hedge funds and other institutional investors have recently bought and sold shares of the business. UMB Bank n.a. lifted its stake in shares of Encompass Health by 387.7% in the third quarter. UMB Bank n.a. now owns 317 shares of the company’s stock valued at $31,000 after purchasing an additional 252 shares during the period. V Square Quantitative Management LLC lifted its position in shares of Encompass Health by 53.0% during the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock valued at $39,000 after acquiring an additional 140 shares during the period. Oakworth Capital Inc. purchased a new stake in shares of Encompass Health during the 2nd quarter worth approximately $40,000. Avior Wealth Management LLC acquired a new stake in shares of Encompass Health in the 3rd quarter worth approximately $40,000. Finally, Benjamin F. Edwards & Company Inc. increased its stake in Encompass Health by 58.9% in the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock valued at $46,000 after purchasing an additional 198 shares in the last quarter. Institutional investors and hedge funds own 97.25% of the company’s stock.

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.