Encompass Health (NYSE:EHC) Shares Gap Up After Earnings Beat

Shares of Encompass Health Corporation (NYSE:EHC) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $99.56, but opened at $115.00. Encompass Health shares last traded at $110.5260, with a volume of 194,168 shares.

The company reported $1.46 EPS for the quarter, topping analysts’ consensus estimates of $1.29 by $0.17. The company had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.54 billion. Encompass Health had a return on equity of 17.84% and a net margin of 9.33%.The firm’s quarterly revenue was up 9.9% on a year-over-year basis. During the same period in the previous year, the firm earned $1.17 earnings per share. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS.

Analyst Ratings Changes

A number of analysts have weighed in on the company. Zacks Research downgraded Encompass Health from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Raymond James Financial raised Encompass Health to a “strong-buy” rating in a research note on Friday, October 31st. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. Finally, Barclays reaffirmed an “overweight” rating and set a $153.00 price objective on shares of Encompass Health in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $143.29.

Hedge Funds Weigh In On Encompass Health

Institutional investors have recently modified their holdings of the company. Citizens National Bank Trust Department purchased a new stake in shares of Encompass Health in the third quarter valued at about $26,000. First Horizon Corp purchased a new stake in Encompass Health in the 3rd quarter valued at about $34,000. WPG Advisers LLC lifted its position in shares of Encompass Health by 73.3% during the 4th quarter. WPG Advisers LLC now owns 324 shares of the company’s stock worth $34,000 after buying an additional 137 shares in the last quarter. Westside Investment Management Inc. boosted its stake in shares of Encompass Health by 56.7% in the 3rd quarter. Westside Investment Management Inc. now owns 279 shares of the company’s stock worth $35,000 after buying an additional 101 shares during the last quarter. Finally, Flagship Harbor Advisors LLC bought a new position in shares of Encompass Health in the fourth quarter valued at approximately $37,000. 97.25% of the stock is owned by institutional investors and hedge funds.

Encompass Health Stock Up 12.3%

The stock has a 50-day moving average of $104.47 and a 200 day moving average of $114.44. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.76. The company has a market capitalization of $11.25 billion, a PE ratio of 21.10, a P/E/G ratio of 1.54 and a beta of 0.73.

Encompass Health Company Profile

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.