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

Encompass Health (NYSE:EHC) issued an update on its FY 2026 earnings guidance on Friday morning. The company provided earnings per share guidance of 6.230-6.370 for the period, compared to the consensus 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 2.9%

EHC traded up $3.87 during trading on Friday, hitting $135.36. The company’s stock had a trading volume of 280,996 shares, compared to its average volume of 1,045,354. Encompass Health has a twelve month low of $92.77 and a twelve month high of $137.27. The firm’s 50 day moving average price is $122.58 and its 200-day moving average price is $109.81. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19. The stock has a market cap of $13.35 billion, a PE ratio of 21.16, a PEG ratio of 2.47 and a beta of 0.74.

Encompass Health (NYSE:EHC) last issued its earnings results on Wednesday, October 28th. The company reported $1.52 EPS for the quarter, beating analysts’ consensus estimates of $1.36 by $0.16. Encompass Health had a net margin of 10.17% and a return on equity of 18.62%. The business had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter last year, the firm posted $1.23 EPS. The business’s revenue for the quarter was up 8.9% compared to the same quarter last year. On average, analysts expect that Encompass Health will post 6.08 earnings per share for the current year.

Encompass Health Announces Dividend

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

Analyst Ratings Changes

A number of research firms have recently issued reports on EHC. UBS Group restated a “buy” rating and set a $165.00 price target on shares of Encompass Health in a report on Friday. TD Cowen lifted their target price on shares of Encompass Health from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, August 10th. KeyCorp increased their price target on Encompass Health from $147.00 to $150.00 and gave the company an “overweight” rating in a report on Friday. Barclays boosted their target price on shares of Encompass Health from $144.00 to $151.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, Raymond James Financial set a $150.00 price target on shares of Encompass Health in a research note on Monday, September 28th. One investment 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.com, the company has an average rating of “Buy” and a consensus target price of $152.00.

Insider Buying and Selling at Encompass Health

In other news, CEO Mark J. Tarr sold 173,148 shares of the company’s stock in a transaction that occurred on 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 $33,602,622.58. This represents a 39.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 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 completion of the sale, the executive vice president directly owned 75,041 shares in the company, valued at approximately $9,086,714.69. The trade was a 6.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 186,912 shares of company stock worth $23,434,845 over the last ninety days. 1.80% of the stock is currently owned by insiders.

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.