Encompass Health (NYSE:EHC) Posts Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Encompass Health (NYSE:EHC) posted its quarterly earnings data on Monday. The company reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.09, Briefing.com reports. The business 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 firm’s revenue for the quarter was up 11.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.86 earnings per share. 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 Trading Down 0.6 %

NYSE:EHC traded down $0.58 during trading hours on Thursday, hitting $100.76. 110,957 shares of the company were exchanged, compared to its average volume of 636,324. The stock has a market capitalization of $10.14 billion, a price-to-earnings ratio of 24.48, a price-to-earnings-growth ratio of 1.45 and a beta of 0.88. Encompass Health has a one year low of $61.08 and a one year high of $102.36. The company has a fifty day simple moving average of $94.14 and a 200 day simple moving average of $88.61. 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 firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Thursday, January 2nd will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 0.67%. The ex-dividend date of this dividend is Thursday, January 2nd. Encompass Health’s payout ratio is currently 16.43%.

Encompass Health announced that its board has authorized a share buyback plan on Wednesday, July 24th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 5.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Encompass Health

In related news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction that occurred 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 transaction, the chief financial officer now directly owns 136,227 shares of the company’s stock, valued at $11,761,839.18. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 2.10% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on EHC. KeyCorp boosted their price objective on shares of Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a report on Tuesday. Stephens restated an “overweight” rating and issued a $105.00 price target on shares of Encompass Health in a research note on Tuesday, August 6th. Truist Financial reiterated a “buy” rating and issued a $116.00 price target (up from $108.00) on shares of Encompass Health in a research note on Wednesday. Leerink Partners began coverage on shares of Encompass Health in a research report on Wednesday, July 10th. They set an “outperform” rating and a $100.00 price objective for the company. Finally, Barclays lifted their price target on Encompass Health from $109.00 to $116.00 and gave the company an “overweight” rating in a research note on Tuesday. Nine analysts have rated the stock with a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus target price of $107.11.

Encompass Health Company Profile

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.