Zacks Research Predicts Weaker Earnings for Encompass Health

Encompass Health Co. (NYSE:EHC) – Analysts at Zacks Research dropped their Q4 2025 earnings estimates for Encompass Health in a research report issued on Wednesday, January 8th. Zacks Research analyst Z. Masood now anticipates that the company will post earnings per share of $1.14 for the quarter, down from their previous estimate of $1.15. 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 Q2 2026 earnings at $1.40 EPS.

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

Several other equities analysts have also recently commented on EHC. Royal Bank of Canada raised their price target on shares of Encompass Health from $105.00 to $110.00 and gave the company an “outperform” rating in a research report on Wednesday, October 30th. 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 report on Wednesday, October 30th. UBS Group increased their price target on Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a research report on Wednesday, September 25th. KeyCorp raised their target price on shares of Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a report on Tuesday, October 29th. Finally, Barclays upped their price objective on Encompass Health from $109.00 to $116.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 29th. Nine analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $107.11.

Encompass Health Trading Up 1.3 %

Shares of Encompass Health stock opened at $92.78 on Friday. Encompass Health has a fifty-two week low of $67.43 and a fifty-two week high of $104.55. The stock has a 50 day moving average of $98.39 and a 200 day moving average of $93.61. The firm has a market capitalization of $9.35 billion, a price-to-earnings ratio of 22.41, a PEG ratio of 1.30 and a beta of 0.89. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.04 and a current ratio of 1.04.

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Thursday, January 2nd will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 0.73%. The ex-dividend date is Thursday, January 2nd. Encompass Health’s payout ratio is 16.43%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of EHC. UMB Bank n.a. grew its stake in shares of Encompass Health by 387.7% during the 3rd quarter. UMB Bank n.a. now owns 317 shares of the company’s stock worth $31,000 after purchasing an additional 252 shares during the period. V Square Quantitative Management LLC increased its holdings in Encompass Health by 53.0% in the third quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock valued at $39,000 after buying an additional 140 shares in the last quarter. Avior Wealth Management LLC acquired a new stake in shares of Encompass Health during the 3rd quarter valued at approximately $40,000. Benjamin F. Edwards & Company Inc. grew its holdings in shares of 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 acquiring an additional 198 shares during the period. Finally, Point72 Asia Singapore Pte. Ltd. acquired a new position in Encompass Health during the second quarter worth $58,000. Institutional investors and hedge funds own 97.25% 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.