Encompass Health Corp Hits 20-Day Low Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy EHC?
Source: Benzinga
Encompass Health Corp's stock declined by 3.27%, hitting a 20-day low as market conditions weakened.
The Nasdaq-100 and S&P 500 showed slight gains, but Encompass Health's performance was negatively impacted by broader market trends.
This decline may raise concerns among investors about the company's resilience in a challenging market environment.
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Analyst Views on EHC
Wall Street analysts forecast EHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EHC is 143.33 USD with a low forecast of 140.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 99.560
Low
140.00
Averages
143.33
High
150.00
Current: 99.560
Low
140.00
Averages
143.33
High
150.00
About EHC
Encompass Health Corporation is an owner and operator of inpatient rehabilitation hospitals in the United States. The Company provides compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and treatments to maximize recovery. It operates hospitals in 38 states and Puerto Rico, with concentrations in Florida and Texas. It operates approximately 166 inpatient rehabilitation hospitals. Its inpatient rehabilitation hospitals offer specialized rehabilitative care across an array of diagnoses and deliver comprehensive patient care services. It provides care to patients who suffer from cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures and a variety of debilitating neurological conditions. Its hospitals have settings for treating the debilitating effects of the COVID-19 virus, such as significant muscle weakness, cognitive impairments, shortness of breath with activity and malnutrition.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Encompass Health Reports Strong Q4 Earnings Exceeding Expectations
- Significant Earnings Growth: Encompass Health reported a net income of $146.30 million for Q4, translating to $1.42 per share, which marks a substantial increase from last year's $120.50 million and $1.18 per share, indicating improved profitability.
- Exceeding Market Expectations: The adjusted net income reached $148.80 million, or $1.46 per share, surpassing analysts' expectations of $1.30 per share, demonstrating the company's success in cost control and operational efficiency.
- Steady Revenue Increase: The company's Q4 revenue rose by 10% to $1.545 billion, up from $1.405 billion last year, reflecting strong market demand and business expansion.
- Optimistic Future Outlook: Encompass Health provided FY26 revenue guidance of $6.365 billion to $6.465 billion and EPS guidance of $5.81 to $6.10, showcasing the company's confidence in future growth and clear strategic planning.
See More
Encompass Health Q4 2025 Earnings Call Highlights
- Strong Performance: Encompass Health reported Q4 2025 revenue of $1.5 billion, a 9.9% increase, while adjusted EBITDA rose 15.9% to $335.6 million, demonstrating robust market performance and enhanced profitability.
- Cost Control Success: Despite adding 517 beds, the company reduced premium labor spend by over $21 million from 2024, showcasing effective cost management alongside expansion, which strengthens financial flexibility.
- Optimistic Outlook: Management projects 2026 net operating revenue between $6.365 billion and $6.465 billion, with adjusted EBITDA of $1.34 billion to $1.38 billion, reflecting confidence in future growth and commitment to ongoing investments.
- Strategic Realignment: The company plans to introduce small-format hospitals in 2027, implementing a hub-and-spoke strategy to adapt to market demand changes, further expanding market share and enhancing service capabilities.
See More
S&P 500 Futures Rise in Pre-Market Session; Doximity and Stellantis Underperform
Market Opening: U.S. stock markets are set to open in two hours.
Encompass Health Corp. Performance: Encompass Health Corp. (EHC) saw a 16.6% increase in pre-market trading.
Bloom Energy Corp. Performance: Bloom Energy Corp. (BE) experienced a 12.4% rise in pre-market trading.
Overall Market Sentiment: The significant gains in these companies indicate positive market sentiment ahead of the market opening.
See More
Encompass Health Q4 Earnings Exceed Expectations
- Earnings Beat: Encompass Health reported a Q4 non-GAAP EPS of $1.46, exceeding expectations by $0.16, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Significant Revenue Growth: The company achieved revenues of $1.55 billion in Q4, marking a 6.9% year-over-year increase and surpassing estimates by $10 million, indicating robust demand and competitive positioning in the market.
- Positive Market Reaction: The strong earnings report is likely to drive Encompass Health's stock price upward, attracting more investor interest and potentially enhancing the company's market valuation.
- Optimistic Future Outlook: With ongoing operational optimizations and service expansions, the company is expected to maintain its growth momentum in the coming quarters, strengthening its market position in the healthcare sector.
See More
Encompass Health Reports Strong Q4 2025 Results with Significant Growth
- Significant Revenue Growth: In Q4 2025, Encompass Health reported net operating revenue of $1.5446 billion, a 9.9% increase from Q4 2024, indicating strong performance and sustained demand in the rehabilitation hospital market.
- Earnings Per Share Improvement: Adjusted earnings per share rose from $1.17 in 2024 to $1.46, a 24.8% increase, demonstrating a significant enhancement in profitability that boosts investor confidence.
- Increased Operating Cash Flow: The company generated $346 million in cash flows from operating activities in Q4, a 24.1% increase year-over-year, providing ample funding for future expansion and investments.
- Optimistic 2026 Outlook: Encompass Health projects net operating revenue for 2026 to be between $6.365 billion and $6.465 billion, with adjusted EBITDA expected to range from $1.34 billion to $1.38 billion, reflecting confidence in future growth and rising market demand.
See More
Encompass Health Set to Announce Q4 Earnings on February 5
- Earnings Announcement Date: Encompass Health is set to release its Q4 earnings on February 5, with a consensus EPS estimate of $1.30, reflecting an 11.1% year-over-year increase, indicating ongoing improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $1.54 billion, representing a 6.2% year-over-year growth, which underscores the company's robust performance in the healthcare sector and rising market demand.
- Historical Performance Review: Over the past two years, Encompass Health has consistently beaten EPS estimates 100% of the time and has surpassed revenue estimates 75% of the time, demonstrating the company's reliability and consistency in financial performance.
- Estimate Revision Dynamics: Despite having no upward revisions in EPS estimates over the last three months, with four downward revisions, and three downward revisions in revenue estimates, this may reflect a cautious market sentiment regarding the company's future performance.
See More
Encompass Health Reports Strong Q4 Earnings Exceeding Expectations
- Significant Earnings Growth: Encompass Health reported a net income of $146.30 million for Q4, translating to $1.42 per share, which marks a substantial increase from last year's $120.50 million and $1.18 per share, indicating improved profitability.
- Exceeding Market Expectations: The adjusted net income reached $148.80 million, or $1.46 per share, surpassing analysts' expectations of $1.30 per share, demonstrating the company's success in cost control and operational efficiency.
- Steady Revenue Increase: The company's Q4 revenue rose by 10% to $1.545 billion, up from $1.405 billion last year, reflecting strong market demand and business expansion.
- Optimistic Future Outlook: Encompass Health provided FY26 revenue guidance of $6.365 billion to $6.465 billion and EPS guidance of $5.81 to $6.10, showcasing the company's confidence in future growth and clear strategic planning.
See More
Encompass Health Q4 2025 Earnings Call Highlights
- Strong Performance: Encompass Health reported Q4 2025 revenue of $1.5 billion, a 9.9% increase, while adjusted EBITDA rose 15.9% to $335.6 million, demonstrating robust market performance and enhanced profitability.
- Cost Control Success: Despite adding 517 beds, the company reduced premium labor spend by over $21 million from 2024, showcasing effective cost management alongside expansion, which strengthens financial flexibility.
- Optimistic Outlook: Management projects 2026 net operating revenue between $6.365 billion and $6.465 billion, with adjusted EBITDA of $1.34 billion to $1.38 billion, reflecting confidence in future growth and commitment to ongoing investments.
- Strategic Realignment: The company plans to introduce small-format hospitals in 2027, implementing a hub-and-spoke strategy to adapt to market demand changes, further expanding market share and enhancing service capabilities.
See More
S&P 500 Futures Rise in Pre-Market Session; Doximity and Stellantis Underperform
Market Opening: U.S. stock markets are set to open in two hours.
Encompass Health Corp. Performance: Encompass Health Corp. (EHC) saw a 16.6% increase in pre-market trading.
Bloom Energy Corp. Performance: Bloom Energy Corp. (BE) experienced a 12.4% rise in pre-market trading.
Overall Market Sentiment: The significant gains in these companies indicate positive market sentiment ahead of the market opening.
See More
Encompass Health Q4 Earnings Exceed Expectations
- Earnings Beat: Encompass Health reported a Q4 non-GAAP EPS of $1.46, exceeding expectations by $0.16, which reflects strong profitability and boosts investor confidence in the company's financial health.
- Significant Revenue Growth: The company achieved revenues of $1.55 billion in Q4, marking a 6.9% year-over-year increase and surpassing estimates by $10 million, indicating robust demand and competitive positioning in the market.
- Positive Market Reaction: The strong earnings report is likely to drive Encompass Health's stock price upward, attracting more investor interest and potentially enhancing the company's market valuation.
- Optimistic Future Outlook: With ongoing operational optimizations and service expansions, the company is expected to maintain its growth momentum in the coming quarters, strengthening its market position in the healthcare sector.
See More
Encompass Health Reports Strong Q4 2025 Results with Significant Growth
- Significant Revenue Growth: In Q4 2025, Encompass Health reported net operating revenue of $1.5446 billion, a 9.9% increase from Q4 2024, indicating strong performance and sustained demand in the rehabilitation hospital market.
- Earnings Per Share Improvement: Adjusted earnings per share rose from $1.17 in 2024 to $1.46, a 24.8% increase, demonstrating a significant enhancement in profitability that boosts investor confidence.
- Increased Operating Cash Flow: The company generated $346 million in cash flows from operating activities in Q4, a 24.1% increase year-over-year, providing ample funding for future expansion and investments.
- Optimistic 2026 Outlook: Encompass Health projects net operating revenue for 2026 to be between $6.365 billion and $6.465 billion, with adjusted EBITDA expected to range from $1.34 billion to $1.38 billion, reflecting confidence in future growth and rising market demand.
See More
Encompass Health Set to Announce Q4 Earnings on February 5
- Earnings Announcement Date: Encompass Health is set to release its Q4 earnings on February 5, with a consensus EPS estimate of $1.30, reflecting an 11.1% year-over-year increase, indicating ongoing improvement in profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $1.54 billion, representing a 6.2% year-over-year growth, which underscores the company's robust performance in the healthcare sector and rising market demand.
- Historical Performance Review: Over the past two years, Encompass Health has consistently beaten EPS estimates 100% of the time and has surpassed revenue estimates 75% of the time, demonstrating the company's reliability and consistency in financial performance.
- Estimate Revision Dynamics: Despite having no upward revisions in EPS estimates over the last three months, with four downward revisions, and three downward revisions in revenue estimates, this may reflect a cautious market sentiment regarding the company's future performance.
See More
