Encompass Health (NYSE:EHC) Releases Earnings Results, Beats Expectations By $0.09 EPS

Encompass Health (NYSE:EHC) announced its earnings results on Monday. The company reported $1.03 earnings per share for the quarter, beating analysts’ consensus estimates of $0.94 by $0.09, Briefing.com reports. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. During the same quarter in the previous year, the firm posted $0.86 EPS. The company’s revenue for the quarter was up 11.9% compared to the same quarter last year. Encompass Health updated its FY24 guidance to $4.19-$4.33 EPS and its FY 2024 guidance to 4.190-4.330 EPS.

Encompass Health Stock Performance

EHC stock traded up $7.27 during midday trading on Tuesday, reaching $100.36. 804,453 shares of the company’s stock traded hands, compared to its average volume of 628,527. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 1.08. The stock’s 50-day moving average is $93.67 and its 200 day moving average is $88.39. The stock has a market cap of $10.10 billion, a P/E ratio of 25.31, 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.

Encompass Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Thursday, January 2nd will be issued a dividend of $0.17 per share. The ex-dividend date is Thursday, January 2nd. This represents a $0.68 annualized dividend and a dividend yield of 0.68%. Encompass Health’s payout ratio is 17.35%.

Insider Transactions at Encompass Health

In related news, CFO Douglas E. Coltharp sold 12,260 shares of the stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the completion of the sale, the chief financial officer now owns 136,227 shares in the company, valued at approximately $11,761,839.18. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 2.10% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on EHC shares. Royal Bank of Canada boosted their price objective on shares of Encompass Health from $95.00 to $105.00 and gave the stock an “outperform” rating in a research note on Thursday, September 26th. Leerink Partners assumed coverage on shares of Encompass Health in a research note on Wednesday, July 10th. They set an “outperform” rating and a $100.00 price objective on the stock. UBS Group upped their target price on shares of Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research note on Wednesday, September 25th. Leerink Partnrs upgraded shares of Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Finally, Truist Financial upped their target price on shares of Encompass Health from $104.00 to $108.00 and gave the stock a “buy” rating in a research note on Monday, October 14th. Nine investment analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. According to MarketBeat.com, Encompass Health has an average rating of “Buy” and a consensus price target of $105.67.

Encompass Health announced that its Board of Directors has approved a share buyback 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 shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.

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.