Encompass Health (NYSE:EHC) Posts Earnings Results

Encompass Health (NYSE:EHC) announced its quarterly earnings results 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. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The company had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.33 billion. During the same quarter in the previous year, the firm earned $0.86 earnings per share. The business’s quarterly revenue was up 11.9% compared to the same quarter last year. 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 Up 1.3 %

Shares of NYSE:EHC traded up $1.35 during midday trading on Wednesday, hitting $101.35. The company had a trading volume of 1,205,646 shares, compared to its average volume of 639,027. The firm 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. The stock has a market cap of $10.20 billion, a price-to-earnings ratio of 24.48, a PEG ratio of 1.45 and a beta of 0.88. Encompass Health has a 12 month low of $61.08 and a 12 month high of $102.36.

Encompass Health Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Thursday, January 2nd will be given a $0.17 dividend. The ex-dividend date of this dividend is Thursday, January 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 0.67%. Encompass Health’s payout ratio is 16.43%.

Analysts Set New Price Targets

A number of analysts have weighed in on EHC shares. 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. KeyCorp boosted their price target on Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a research report on Tuesday. Stephens reissued an “overweight” rating and set a $105.00 price objective on shares of Encompass Health in a research report on Tuesday, August 6th. Leerink Partnrs raised Encompass Health to a “strong-buy” rating in a research report on Wednesday, July 10th. Finally, Truist Financial reissued a “buy” rating and set a $116.00 price objective (up previously from $108.00) on shares of Encompass Health in a research report on Wednesday. Nine investment analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $107.11.

Encompass Health declared that its board has initiated a stock buyback program on Wednesday, July 24th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 5.4% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction dated 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 transaction, the chief financial officer now directly owns 136,227 shares in the company, valued at approximately $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 SEC, which is accessible through this link. Corporate insiders own 2.10% of the company’s stock.

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.