Encompass Health (NYSE:EHC) Announces Quarterly Earnings Results

Encompass Health (NYSE:EHC) issued its quarterly earnings data on Monday. The company reported $1.03 earnings per share for the quarter, topping analysts’ consensus estimates of $0.94 by $0.09, Briefing.com reports. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The business’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same period last year, the company earned $0.86 EPS. 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 Up 6.6 %

NYSE:EHC traded up $6.11 on Tuesday, reaching $99.20. 337,952 shares of the stock traded hands, compared to its average volume of 626,552. The company’s fifty day simple moving average is $93.67 and its 200 day simple moving average is $88.39. The company has a market capitalization of $9.98 billion, a price-to-earnings ratio of 25.31, a PEG ratio of 1.45 and a beta of 0.88. Encompass Health has a 12 month low of $59.57 and a 12 month high of $102.36. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 1.08.

Encompass Health Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Thursday, January 2nd will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 0.69%. The ex-dividend date is Thursday, January 2nd. Encompass Health’s dividend payout ratio is presently 17.35%.

Insider Activity

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction on Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total value of $1,058,528.40. Following the completion of the sale, the chief financial officer now owns 136,227 shares of the company’s stock, valued at approximately $11,761,839.18. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 2.10% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. KeyCorp boosted their price objective on shares of Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a research report on Tuesday. Stephens reissued an “overweight” rating and issued a $105.00 price target on shares of Encompass Health in a research note on Tuesday, August 6th. Leerink Partners initiated coverage on Encompass Health in a report on Wednesday, July 10th. They set an “outperform” rating and a $100.00 target price on the stock. Royal Bank of Canada raised their target price on Encompass Health from $95.00 to $105.00 and gave the company an “outperform” rating in a research note on Thursday, September 26th. Finally, Leerink Partnrs raised Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Nine investment analysts have rated the stock with a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of $105.67.

Encompass Health announced that its Board of Directors has approved a stock buyback plan on Wednesday, July 24th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 5.4% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board believes its stock is undervalued.

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.