HealthSouth Raises Outlook After 3Q Profit Jumps

Inpatient rehabilitation services provider HealthSouth Corp. posted a greater third-quarter profit on Tuesday, and raised its expectations for the remainder of the year.

HealthSouth said its profit rose to $10.3 million, or 12 cents per share, from $100,000, or break even per share, a year ago, aided by lower operating costs and other items. Excluding one-time items, the company said it earned 34 cents per share from operations.

Revenue rose 4 percent to $472.7 million from $455.5 million.

According to a Thomson Reuters survey, analysts were expecting 24 cents per share and revenue of $474 million.

HealthSouth reported $8.5 million in expenses related to legal settlements, down from $17.1 million a year ago. It also reported lower costs related to interest expense and amortization of debt discounts and fees.

HealthSouth raised its profit forecast for the full year, calling for net income between $1.45 and $1.50 per share. Its previous forecast was $1.15 to $1.25 per share, and analysts were expecting $1.32 per share.

In aftermarket trading, shares of HealthSouth rose 75 cents, or 4.8 percent, to $16.48. The stock rose 4 percent to $15.73 during the day, and has traded between $6.71 and $17.80 over the last year.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.