Encompass Health (NYSE:EHC) Issues FY24 Earnings Guidance

Encompass Health (NYSE:EHC) issued an update on its FY24 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of $4.19-$4.33 for the period, compared to the consensus estimate of $4.19. The company issued revenue guidance of $5.325-$5.375 billion, compared to the consensus revenue estimate of $5.32 billion. Encompass Health also updated its FY 2024 guidance to 4.190-4.330 EPS.

Analyst Ratings Changes

A number of research analysts have recently issued reports on EHC shares. UBS Group raised their price target on shares of Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research report on Wednesday, September 25th. Royal Bank of Canada increased their price target on shares of Encompass Health from $105.00 to $110.00 and gave the stock an “outperform” rating in a research report on Wednesday. Truist Financial reaffirmed a “buy” rating and issued a $116.00 price target (up previously from $108.00) on shares of Encompass Health in a research report on Wednesday. Barclays upped their target price on shares of Encompass Health from $109.00 to $116.00 and gave the company an “overweight” rating in a research note on Tuesday. Finally, KeyCorp lifted 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. Nine research analysts have rated the stock with a buy rating and two have given a strong buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Buy” and an average target price of $107.11.

Encompass Health Price Performance

EHC stock traded down $0.84 during trading on Thursday, reaching $100.50. 431,941 shares of the company were exchanged, compared to its average volume of 637,958. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.35 and a quick ratio of 1.35. The company has a market capitalization of $10.11 billion, a price-to-earnings ratio of 24.24, a P/E/G ratio of 1.45 and a beta of 0.88. Encompass Health has a twelve month low of $61.08 and a twelve month high of $102.36. The company has a 50-day moving average of $94.14 and a two-hundred day moving average of $88.61.

Encompass Health (NYSE:EHC) last issued its quarterly 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. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The company’s revenue was up 11.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.86 earnings per share. As a group, equities analysts predict that Encompass Health will post 4.18 earnings per share for the current fiscal year.

Encompass Health Dividend Announcement

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

Encompass Health announced that its Board of Directors has authorized a share repurchase plan on Wednesday, July 24th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 5.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of the firm’s stock in a transaction dated Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total value of $1,058,528.40. Following the completion of the sale, the chief financial officer now directly owns 136,227 shares in the company, valued at $11,761,839.18. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Insiders own 2.10% of the company’s stock.

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.