Encompass Health (NYSE:EHC) Updates FY24 Earnings Guidance

Encompass Health (NYSE:EHC) updated its FY24 earnings guidance on Monday. The company provided EPS guidance of $4.19-$4.33 for the period, compared to the consensus EPS estimate of $4.19. The company issued revenue guidance of $5.325-$5.375 billion, compared to the consensus revenue estimate of $5.32 billion. Encompass Health also updated its FY 2024 guidance to 4.190-4.330 EPS.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on EHC. Truist Financial reaffirmed a “buy” rating and issued a $116.00 target price (up previously from $108.00) on shares of Encompass Health in a research report on Wednesday. UBS Group boosted their price target on Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research report on Wednesday, September 25th. Leerink Partnrs raised Encompass Health to a “strong-buy” rating in a research report on Wednesday, July 10th. Leerink Partners assumed coverage on Encompass Health in a research note on Wednesday, July 10th. They issued an “outperform” rating and a $100.00 price objective on the stock. Finally, KeyCorp boosted their price target on Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a research note on Tuesday. Nine investment analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $106.56.

Encompass Health Price Performance

Shares of EHC traded up $0.47 during mid-day trading on Wednesday, reaching $100.47. The company had a trading volume of 294,267 shares, compared to its average volume of 634,632. The company’s 50 day simple moving average is $93.90 and its 200 day simple moving average is $88.52. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.35 and a current ratio of 1.35. Encompass Health has a 1-year low of $61.08 and a 1-year high of $102.36. The company has a market capitalization of $10.11 billion, a price-to-earnings ratio of 24.19, a P/E/G ratio of 1.45 and a beta of 0.88.

Encompass Health (NYSE:EHC) last issued its quarterly earnings results on Monday, October 28th. The company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.94 by $0.09. The firm had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.33 billion. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The company’s revenue for the quarter was up 11.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.86 EPS. Analysts expect that Encompass Health will post 4.18 EPS for the current year.

Encompass Health Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Thursday, January 2nd will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Thursday, January 2nd. This represents a $0.68 annualized dividend and a dividend yield of 0.68%. Encompass Health’s payout ratio is 16.43%.

Encompass Health declared that its Board of Directors has initiated a stock buyback plan on Wednesday, July 24th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 5.4% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Encompass Health

In other news, CFO Douglas E. Coltharp sold 12,260 shares of the stock in a transaction on Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the completion of the transaction, the chief financial officer now owns 136,227 shares in the company, valued at approximately $11,761,839.18. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.10% of the stock is owned by insiders.

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.