Encompass Health (US:EHC) ZACKS·2025-08-04 22:36Core Insights - Encompass Health (EHC) reported quarterly earnings of $1.4 per share, exceeding the Zacks Consensus Estimate of $1.2 per share, and showing an increase from $1.11 per share a year ago, resulting in an earnings surprise of +16.67% [1] - The company achieved revenues of $1.46 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.29% and up from $1.3 billion year-over-year [2] - Encompass Health has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +15.13%, with actual earnings of $1.37 per share compared to an expected $1.19 per share [1] - The current consensus EPS estimate for the upcoming quarter is $1.16 on revenues of $1.47 billion, and for the current fiscal year, it is $5.01 on revenues of $5.89 billion [7] Stock Performance and Outlook - Encompass Health shares have increased approximately 17.5% since the beginning of the year, outperforming the S&P 500's gain of 6.1% [3] - The company's favorable estimate revisions trend prior to the earnings release has resulted in a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [6] Industry Context - Encompass Health operates within the Medical - Outpatient and Home Healthcare industry, which is currently ranked in the top 26% of over 250 Zacks industries [8] - The industry’s strong performance is supported by empirical research showing that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]