Encompass Health Corp Hits 20-Day Low Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy EHC?
Source: NASDAQ.COM
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
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 109.080
Low
134.00
Averages
146.75
High
160.00
Current: 109.080
Low
134.00
Averages
146.75
High
160.00
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 Declares Quarterly Cash Dividend
- Quarterly Cash Dividend: Encompass Health's board has declared a cash dividend of $0.19 per share, payable on April 15, 2026, to shareholders of record as of April 1, 2026, demonstrating the company's ongoing commitment to shareholder returns.
- Industry Leadership: As the largest owner and operator of inpatient rehabilitation hospitals in the U.S., Encompass Health operates 173 hospitals across 39 states and Puerto Rico, providing high-quality rehabilitative care that maximizes patient recovery through advanced technology and innovative treatments.
- Recognition and Awards: Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista, and ranks among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies, further solidifying its market position.
- Forward-Looking Statements: The company notes in its press release that future dividend amounts and timing may change, emphasizing the board's authority to adjust the dividend rate, reflecting the company's sensitivity and adaptability to market changes.
See More
Enhabit and Encompass Health Reach Settlement of $43.1 Million
- Settlement Amount: Enhabit and Encompass Health have reached a settlement of $43.1 million in the Delaware Court of Chancery, which not only resolves their claims for attorneys' fees and mitigation damages but also reinforces investor confidence in the companies' legal standing.
- Liability Judgment: The court found that former executives committed
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 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 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 Declares Quarterly Cash Dividend
- Quarterly Cash Dividend: Encompass Health's board has declared a cash dividend of $0.19 per share, payable on April 15, 2026, to shareholders of record as of April 1, 2026, demonstrating the company's ongoing commitment to shareholder returns.
- Industry Leadership: As the largest owner and operator of inpatient rehabilitation hospitals in the U.S., Encompass Health operates 173 hospitals across 39 states and Puerto Rico, providing high-quality rehabilitative care that maximizes patient recovery through advanced technology and innovative treatments.
- Recognition and Awards: Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista, and ranks among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies, further solidifying its market position.
- Forward-Looking Statements: The company notes in its press release that future dividend amounts and timing may change, emphasizing the board's authority to adjust the dividend rate, reflecting the company's sensitivity and adaptability to market changes.
See More
Enhabit and Encompass Health Reach Settlement of $43.1 Million
- Settlement Amount: Enhabit and Encompass Health have reached a settlement of $43.1 million in the Delaware Court of Chancery, which not only resolves their claims for attorneys' fees and mitigation damages but also reinforces investor confidence in the companies' legal standing.
- Liability Judgment: The court found that former executives committed
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 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 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
