Encompass Health (NYSE:EHC) Issues 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 (EPS) 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.

Wall Street Analyst Weigh In

Several research firms have weighed in on EHC. Raymond James Financial set a $150.00 target price on Encompass Health in a research note on Monday, September 28th. UBS Group restated a “buy” rating on shares of Encompass Health in a research report on Friday. Truist Financial set a $156.00 price objective on Encompass Health in a research note on Friday. Wall Street Zen cut Encompass Health from a “buy” rating to a “hold” rating in a research report on Saturday, October 17th. Finally, Weiss Ratings raised Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, Encompass Health has an average rating of “Buy” and an average target price of $150.57.

Encompass Health Stock Performance

Shares of Encompass Health stock opened at $131.74 on Friday. The business has a 50-day simple moving average of $122.58 and a 200 day simple moving average of $109.81. The firm has a market capitalization of $13.00 billion, a price-to-earnings ratio of 20.58, a PEG ratio of 2.47 and a beta of 0.74. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19. Encompass Health has a one year low of $92.77 and a one year high of $133.75.

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

Encompass Health Announces Dividend

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

Insider Buying and Selling

In related news, CEO Mark Tarr sold 173,148 shares of the stock in a transaction 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 directly owned 267,814 shares of the company’s stock, valued at $33,602,622.58. This trade represents a 39.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP John Darby sold 8,906 shares of Encompass Health stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.95, for a total value of $1,121,710.70. Following the transaction, the executive vice president directly owned 75,041 shares in the company, valued at approximately $9,451,413.95. The trade was a 10.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 186,912 shares of company stock valued at $23,434,845. 1.80% of the stock is owned by corporate 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.