HealthSouth Shares Up 7% After-Hours On Q2 Beat, Strong Outlook
HealthSouth (NYSE: HLS) gained more than seven percent after the company beat estimates by a wide margin and raised its outlook well above Street views.
The hospital company attributed revenue growth to higher patient discharge rates and higher revenue per patient discharge. Same-store discharges grew 1.4 percent.
Net income for the recent period declined to $97.9 million, or $0.85 per share, from $179 million, or $1.66 per share in the year earlier.
But revenue grew from $564.5 million to $604.4, while the provision for doubtful accounts increased from $7 million to $9.3 million.
Wall Street expected $0.47 per share, on revenue of $549.8 million.
Chief Executive Jay Grinney said strong cash flow and results of two joint hospital ventures resulted in an improved outlook.
HealthSouth raised its 2014 forecast and now expects earnings of between $2.25 to $2.31 per hare from a previous $1.86 to $1.91 per share. Analysts expect $1.91 per share.
In after-hours trading, HealthSouth was changing hands recently at $40.41, up 7.36 percent.
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