Encompass Health (NYSE:EHC) Issues FY24 Earnings Guidance

Encompass Health (NYSE:EHC) updated its FY24 earnings guidance on Monday morning. The company provided earnings per share guidance of $4.19-$4.33 for the period, compared to the consensus earnings per share 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 Upgrades and Downgrades

EHC has been the topic of a number of analyst reports. Leerink Partners began coverage on shares of Encompass Health in a research note on Wednesday, July 10th. They issued an “outperform” rating and a $100.00 price target on the stock. Royal Bank of Canada increased their price target on shares of Encompass Health from $95.00 to $105.00 and gave the company an “outperform” rating in a report on Thursday, September 26th. KeyCorp boosted their price objective on shares of Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a report on Tuesday. Barclays lifted their target price on Encompass Health from $109.00 to $116.00 and gave the stock an “overweight” rating in a report on Tuesday. Finally, UBS Group upped their price target on Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a report on Wednesday, September 25th. Nine equities research analysts have rated the stock with a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, Encompass Health has an average rating of “Buy” and an average target price of $105.67.

Encompass Health Price Performance

Shares of NYSE:EHC traded up $6.93 during trading on Tuesday, hitting $100.02. 207,467 shares of the company’s stock were exchanged, compared to its average volume of 625,928. The business’s 50-day simple moving average is $93.67 and its 200 day simple moving average is $88.39. The company has a market cap of $10.06 billion, a price-to-earnings ratio of 25.52, a PEG ratio of 1.45 and a beta of 0.88. Encompass Health has a 52-week low of $59.57 and a 52-week high of $102.36. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.35 and a quick ratio of 1.35.

Encompass Health (NYSE:EHC) last issued its earnings results on Monday, October 28th. The company reported $1.03 earnings per share for the quarter, topping analysts’ consensus estimates of $0.94 by $0.09. The firm had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.33 billion. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. Encompass Health’s revenue for the quarter was up 11.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.86 earnings per share. As a group, equities analysts predict that Encompass Health will post 4.18 EPS for the current year.

Encompass Health Announces Dividend

The company also recently declared 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. This represents a $0.68 dividend on an annualized basis and a yield of 0.68%. The ex-dividend date is Thursday, January 2nd. Encompass Health’s payout ratio is presently 17.35%.

Encompass Health announced that its Board of Directors has initiated a stock 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 shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity

In other news, CFO Douglas E. Coltharp sold 12,260 shares of the company’s stock in a transaction dated Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the sale, the chief financial officer now directly owns 136,227 shares in the company, valued at approximately $11,761,839.18. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.10% 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.