William Blair Issues Pessimistic Forecast for EHC Earnings

Encompass Health Co. (NYSE:EHC) – William Blair cut their Q1 2025 EPS estimates for shares of Encompass Health in a research report issued on Friday, November 15th. William Blair analyst J. Haase now forecasts that the company will post earnings per share of $1.20 for the quarter, down from their previous estimate of $1.29. The consensus estimate for Encompass Health’s current full-year earnings is $4.29 per share. William Blair also issued estimates for Encompass Health’s Q2 2025 earnings at $1.18 EPS.

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

Several other research analysts also recently commented on EHC. KeyCorp raised their price target on shares of Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 29th. UBS Group lifted their price objective on shares of Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a report on Wednesday, September 25th. Stephens restated an “overweight” rating and set a $105.00 target price on shares of Encompass Health in a report on Tuesday, August 6th. Truist Financial reiterated a “buy” rating and issued a $116.00 price target (up from $108.00) on shares of Encompass Health in a report on Wednesday, October 30th. Finally, Royal Bank of Canada upped their price objective on Encompass Health from $105.00 to $110.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 30th. Nine investment analysts have rated the stock with a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, Encompass Health presently has a consensus rating of “Buy” and an average price target of $107.11.

Encompass Health Stock Performance

EHC stock opened at $99.08 on Monday. Encompass Health has a twelve month low of $63.78 and a twelve month high of $104.55. The firm has a market cap of $9.98 billion, a price-to-earnings ratio of 23.93, a PEG ratio of 1.31 and a beta of 0.88. The business’s fifty day simple moving average is $96.69 and its two-hundred day simple moving average is $90.58. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.88.

Institutional Investors Weigh In On Encompass Health

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

Encompass Health Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Thursday, January 2nd will be paid a dividend of $0.17 per share. The ex-dividend date of this dividend is Thursday, January 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 0.69%. Encompass Health’s payout ratio is 16.43%.

Encompass Health announced that its Board of Directors has approved a stock repurchase plan on Wednesday, July 24th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to purchase up to 5.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

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.