RHB To Sustain Earnings Growth
Analysts at Morgan Keegan maintain their "outperform" rating on RehabCare Group (NYSE: RHB).
RehabCare Group is scheduled to report is Q4 results on March 2. Morgan Keegan expects RHB to post an EPS of $0.39, as compared to the First Call Consensus of $0.42. RHB’s Q1 earnings would be lower than the earlier estimates, since the Congress has not yet enacted an extension to the Part B therapy caps, affecting RehabCare's Skilled Nursing Rehabilitation Services (SRS) division, the analysts say.
“We are highly confident that the popular cap exceptions will be re-enacted, likely soon, and expect the company's business to snap back once they are… We consequently see no earnings impact beyond the current quarter,” the analysts add.
(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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