Encompass Health (NYSE:EHC) Releases FY 2022 Earnings Guidance

Encompass Health (NYSE:EHCGet Rating) updated its FY 2022 earnings guidance on Tuesday. The company provided EPS guidance of $2.77-$2.91 for the period, compared to the consensus EPS estimate of $3.96. The company issued revenue guidance of $4.25 billion-$4.30 billion, compared to the consensus revenue estimate of $5.38 billion.

Encompass Health Price Performance

Shares of EHC traded up $0.04 during midday trading on Friday, hitting $52.91. 1,340,716 shares of the company traded hands, compared to its average volume of 881,368. The firm has a market cap of $5.28 billion, a P/E ratio of 16.17, a PEG ratio of 2.41 and a beta of 0.91. Encompass Health has a one year low of $44.33 and a one year high of $81.45. The stock has a 50-day moving average of $54.14 and a 200-day moving average of $62.81. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.24 and a quick ratio of 1.26.

Encompass Health (NYSE:EHCGet Rating) last issued its earnings results on Monday, August 1st. The company reported $0.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.97 by ($0.08). Encompass Health had a return on equity of 16.20% and a net margin of 6.22%. The firm had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.34 billion. During the same period in the prior year, the company earned $1.17 EPS. The firm’s quarterly revenue was up 3.3% compared to the same quarter last year. As a group, sell-side analysts predict that Encompass Health will post 3.02 EPS for the current fiscal year.

Encompass Health Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, October 17th. Shareholders of record on Monday, October 3rd will be given a $0.15 dividend. The ex-dividend date is Friday, September 30th. This represents a $0.60 annualized dividend and a yield of 1.13%. Encompass Health’s payout ratio is 34.25%.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on EHC shares. Credit Suisse Group lowered their price target on Encompass Health from $83.00 to $82.00 and set an outperform rating on the stock in a report on Friday, June 10th. StockNews.com cut Encompass Health from a buy rating to a hold rating in a research note on Wednesday. Royal Bank of Canada lowered their target price on Encompass Health from $85.00 to $82.00 in a research note on Wednesday, June 8th. BMO Capital Markets lowered their price target on Encompass Health from $83.00 to $65.00 and set an outperform rating on the stock in a research report on Thursday. Finally, Stephens decreased their target price on Encompass Health from $78.00 to $74.00 and set an overweight rating on the stock in a research report on Tuesday, June 21st. One research analyst has rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Encompass Health has an average rating of Buy and a consensus price target of $74.60.

Hedge Funds Weigh In On Encompass Health

A number of large investors have recently bought and sold shares of the business. US Bancorp DE increased its stake in shares of Encompass Health by 66.4% during the first quarter. US Bancorp DE now owns 9,336 shares of the company’s stock valued at $664,000 after acquiring an additional 3,725 shares during the period. Cambridge Investment Research Advisors Inc. bought a new stake in Encompass Health during the 1st quarter valued at approximately $318,000. PNC Financial Services Group Inc. boosted its stake in Encompass Health by 10.5% during the 1st quarter. PNC Financial Services Group Inc. now owns 8,750 shares of the company’s stock valued at $622,000 after purchasing an additional 834 shares during the period. Bank of Montreal Can boosted its stake in Encompass Health by 1.5% during the 1st quarter. Bank of Montreal Can now owns 11,340 shares of the company’s stock valued at $806,000 after purchasing an additional 173 shares during the period. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its stake in Encompass Health by 10.5% during the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 36,463 shares of the company’s stock valued at $2,593,000 after purchasing an additional 3,477 shares during the period. Institutional investors own 91.70% of the company’s stock.

About Encompass Health

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Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States. The company operates in two segments, Inpatient Rehabilitation, and Home Health and Hospice. The Inpatient Rehabilitation segment provides specialized rehabilitative treatment on an inpatient and outpatient basis to patients who are recovering from conditions, such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations.

Further Reading

Earnings History and Estimates for Encompass Health (NYSE:EHC)

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