Encompass Health (NYSE:EHC) Announces FY 2026 Earnings Guidance

Encompass Health (NYSE:EHC) issued an update on its FY 2026 earnings guidance on Friday. The company provided earnings per share guidance of 6.230-6.370 for the period, compared to the consensus EPS estimate of 6.110. The company issued revenue guidance of $6.5 billion, compared to the consensus revenue estimate of $6.5 billion.

Encompass Health Trading Up 7.9%

NYSE EHC opened at $131.74 on Friday. Encompass Health has a one year low of $92.77 and a one year high of $133.75. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. The company has a market capitalization of $13.00 billion, a price-to-earnings ratio of 20.58, a price-to-earnings-growth ratio of 2.47 and a beta of 0.74. The company’s 50-day simple moving average is $122.58 and its two-hundred day simple moving average is $109.81.

Encompass Health (NYSE:EHC) last released its quarterly earnings data on Wednesday, October 28th. The company reported $1.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.16. The firm had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. Encompass Health had a net margin of 10.17% and a return on equity of 18.62%. The company’s quarterly revenue was up 8.9% on a year-over-year basis. During the same period last year, the firm earned $1.23 earnings per share. Equities analysts forecast that Encompass Health will post 6.08 EPS for the current fiscal year.

Encompass Health Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Monday, January 4th will be issued a $0.21 dividend. The ex-dividend date is Monday, January 4th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.6%. Encompass Health’s dividend payout ratio (DPR) is currently 13.68%.

Analysts Set New Price Targets

EHC has been the subject of several recent research reports. Barclays boosted their price target on Encompass Health from $144.00 to $151.00 and gave the stock an “overweight” rating in a research report on Thursday. Wall Street Zen downgraded Encompass Health from a “buy” rating to a “hold” rating in a research report on Saturday, October 17th. UBS Group reiterated a “buy” rating on shares of Encompass Health in a research note on Friday. TD Cowen boosted their target price on shares of Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a report on Monday, August 10th. Finally, Raymond James Financial set a $150.00 price target on shares of Encompass Health in a report on Monday, September 28th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Buy” and a consensus price target of $150.57.

Insider Activity

In other news, CEO Mark Tarr sold 173,148 shares of the business’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the sale, the chief executive officer owned 267,814 shares in the company, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP John Darby sold 4,858 shares of the company’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $121.09, for a total transaction of $588,255.22. Following the transaction, the executive vice president owned 75,041 shares in the company, valued at approximately $9,086,714.69. This trade represents a 6.08% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 186,912 shares of company stock valued at $23,434,845. Corporate insiders own 1.80% of the company’s stock.

About Encompass Health

Encompass Health Corporation (NYSE:EHC) is a healthcare services company that operates inpatient rehabilitation hospitals in the United States and Puerto Rico. Its hospitals provide intensive rehabilitation to patients recovering from conditions such as stroke, brain and spinal cord injuries, neurological disorders, amputations, hip fractures and other serious illnesses or injuries.

The company’s services typically include nursing care, physical therapy, occupational therapy, speech and language therapy, respiratory therapy and medical management.