Encompass Health (NYSE:EHC) Updates FY24 Earnings Guidance

Encompass Health (NYSE:EHC) issued an update on its FY24 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of $4.19-$4.33 for the period, compared to the consensus 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.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. KeyCorp initiated coverage on Encompass Health in a research note on Friday, October 11th. They issued an “overweight” rating and a $115.00 price objective for the company. Truist Financial lifted their price objective on shares of Encompass Health from $104.00 to $108.00 and gave the company a “buy” rating in a research note on Monday, October 14th. UBS Group boosted their price target on Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a research report on Wednesday, September 25th. Stephens reiterated an “overweight” rating and issued a $105.00 target price on shares of Encompass Health in a research note on Tuesday, August 6th. Finally, Royal Bank of Canada upped their price target on Encompass Health from $95.00 to $105.00 and gave the stock an “outperform” rating in a research note on Thursday, September 26th. Eight investment analysts have rated the stock with a buy rating and three have issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $104.67.

Encompass Health Price Performance

EHC traded down $0.33 on Monday, hitting $93.13. 1,279,158 shares of the company were exchanged, compared to its average volume of 627,938. The business’s fifty day moving average is $93.58 and its 200 day moving average is $88.31. Encompass Health has a fifty-two week low of $59.57 and a fifty-two week high of $98.74. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.35 and a current ratio of 1.35. The firm has a market capitalization of $9.37 billion, a P/E ratio of 23.91, a price-to-earnings-growth ratio of 1.45 and a beta of 0.88.

Encompass Health (NYSE:EHC) last posted its earnings results on Monday, August 5th. The company reported $1.11 EPS for the quarter, topping analysts’ consensus estimates of $1.01 by $0.10. The company had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.30 billion. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. Encompass Health’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.95 earnings per share. As a group, sell-side analysts anticipate that Encompass Health will post 4.18 EPS for the current year.

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Thursday, January 2nd will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 0.73%. The ex-dividend date of this dividend is Thursday, January 2nd. Encompass Health’s payout ratio is currently 17.35%.

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

Insider Transactions at Encompass Health

In related news, CFO Douglas E. Coltharp sold 12,260 shares of the company’s 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 sale, the chief financial officer now owns 136,227 shares of the company’s stock, valued at approximately $11,761,839.18. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 2.10% of the company’s stock.

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.