Q2 EPS Estimates for Encompass Health Cut by Zacks Research

Encompass Health Corporation (NYSE:EHC) – Analysts at Zacks Research reduced their Q2 2025 EPS estimates for shares of Encompass Health in a research note issued to investors on Tuesday, July 8th. Zacks Research analyst R. Sipani now expects that the company will earn $1.16 per share for the quarter, down from their previous forecast of $1.17. The consensus estimate for Encompass Health’s current full-year earnings is $4.80 per share. Zacks Research also issued estimates for Encompass Health’s Q3 2025 earnings at $1.15 EPS.

Encompass Health (NYSE:EHC) last released its quarterly earnings results on Thursday, April 24th. The company reported $1.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.18. The firm had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.43 billion. Encompass Health had a net margin of 8.97% and a return on equity of 17.63%. The company’s revenue for the quarter was up 10.6% on a year-over-year basis. During the same quarter last year, the firm earned $1.12 earnings per share.

Several other research analysts have also recently weighed in on EHC. KeyCorp boosted their price target on shares of Encompass Health from $122.00 to $135.00 and gave the stock an “overweight” rating in a report on Tuesday, May 27th. Wall Street Zen cut shares of Encompass Health from a “strong-buy” rating to a “buy” rating in a research note on Friday, June 6th. Barclays boosted their target price on shares of Encompass Health from $118.00 to $129.00 and gave the company an “overweight” rating in a research note on Friday, April 25th. UBS Group boosted their price target on shares of Encompass Health from $117.00 to $130.00 and gave the company a “buy” rating in a research report on Monday, April 28th. Finally, Royal Bank Of Canada boosted their price target on shares of Encompass Health from $110.00 to $125.00 and gave the company an “outperform” rating in a research report on Monday, April 28th. Seven investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Buy” and an average price target of $131.50.

Encompass Health Price Performance

EHC stock opened at $118.50 on Friday. The company has a fifty day moving average price of $119.58 and a 200-day moving average price of $106.20. The company has a market capitalization of $11.95 billion, a P/E ratio of 24.48, a PEG ratio of 2.39 and a beta of 0.88. Encompass Health has a 52-week low of $82.74 and a 52-week high of $123.13. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.06 and a current ratio of 1.06.

Encompass Health Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 15th. Investors of record on Tuesday, July 1st will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 0.57%. The ex-dividend date of this dividend is Tuesday, July 1st. Encompass Health’s dividend payout ratio (DPR) is presently 14.05%.

Insider Buying and Selling

In related news, EVP John Patrick Darby sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, April 29th. The shares were sold at an average price of $114.79, for a total transaction of $1,147,900.00. Following the sale, the executive vice president owned 79,710 shares of the company’s stock, valued at approximately $9,149,910.90. This represents a 11.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Elissa Joy Charbonneau sold 4,279 shares of the company’s stock in a transaction that occurred on Tuesday, May 6th. The stock was sold at an average price of $116.61, for a total transaction of $498,974.19. Following the sale, the insider directly owned 11,958 shares in the company, valued at $1,394,422.38. This trade represents a 26.35% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 132,663 shares of company stock valued at $16,034,082. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

A number of institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC raised its holdings in Encompass Health by 21.5% in the 1st quarter. GAMMA Investing LLC now owns 2,366 shares of the company’s stock worth $240,000 after purchasing an additional 419 shares in the last quarter. Sequoia Financial Advisors LLC increased its stake in shares of Encompass Health by 6.7% in the 1st quarter. Sequoia Financial Advisors LLC now owns 2,727 shares of the company’s stock worth $276,000 after acquiring an additional 172 shares in the last quarter. Cambridge Investment Research Advisors Inc. increased its stake in shares of Encompass Health by 30.1% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 9,597 shares of the company’s stock worth $972,000 after acquiring an additional 2,218 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of Encompass Health by 0.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 644,764 shares of the company’s stock worth $59,544,000 after acquiring an additional 4,345 shares in the last quarter. Finally, Fifth Third Bancorp boosted its holdings in shares of Encompass Health by 88.7% during the 1st quarter. Fifth Third Bancorp now owns 4,290 shares of the company’s stock valued at $434,000 after acquiring an additional 2,017 shares during the last quarter. Hedge funds and other institutional investors own 97.25% 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.