Today's Trend
Encompass Health Corporation (NYSE: EHC) shares have decreased as investors weigh a mixed set of Zacks Research earnings-estimate revisions. The changes are generally modest, suggesting limited impact on the stock by themselves, but near-term downward revisions may be contributing to weaker sentiment.
- Zacks raised its FY2026 EPS forecast to $6.03 from $5.96, increased FY2027 EPS to $6.42 from $6.35, and lifted FY2028 EPS to $7.18 from $7.16. The revisions indicate analysts continue to expect earnings growth over the next several years. Encompass Health analyst estimates
- Quarterly estimates were also raised for Q1 2027, to $1.65 EPS from $1.63; Q2 2027, to $1.64 from $1.60; Q3 2027, to $1.49 from $1.48; and Q2 2028, to $1.87 from $1.84. These increases modestly improve the longer-term earnings outlook.
- Zacks’ FY2026 forecast of $6.03 remains slightly below the broader analyst consensus of approximately $6.08-$6.09 per share. This indicates that the revisions are constructive overall but do not represent a major upside surprise.
- Zacks reduced its Q3 2026 EPS estimate to $1.35 from $1.36, Q4 2026 EPS to $1.53 from $1.55, and Q1 2028 EPS to $1.77 from $1.80. Lower near-term estimates could weigh on the stock because they point to slightly softer earnings momentum in upcoming reporting periods.
The estimate changes follow Encompass Health’s latest quarterly results, when the company exceeded earnings and revenue expectations and reported year-over-year revenue growth. With the stock trading near its 12-month high and above its moving averages, investors may be particularly sensitive to even small reductions in near-term forecasts.