HealthSouth returns to profit in 2nd-qtr after loss a year ago, raises 2010 guidance

HealthSouth returns to 2Q profit, boosts view

BIRMINGHAM, Ala. — HealthSouth Corp., which provides inpatient rehabilitation services, said Monday posted a profit for the second quarter compared to a loss a year ago, when a securities litigation settlement dragged down performance.

CEO Jay Grinney said the company’s latest results were helped by good volume growth, pricing and expense management. The company also boosted its 2010 guidance.

The Birmingham, Ala., company earned $40.8 million, or 44 cents per share, in the three months that ended June 30. That compares to a loss of $12 million, or 14 cents per share, in the same quarter of 2009.

Revenue rose 3 percent to $496.9 million from $481.6 million a year ago.

Analysts polled by Thomson Reuters expected, on average, earnings of 43 cents per share.

Earnings in the second-quarter of 2009 including a charge of more than $48 million from a securities litigation settlement.

HealthSouth said it expects 2010 adjusted income from continuing operations to range between $1.66 and $1.74 per share. That’s up from a forecast it made earlier this year for earnings in the range of $1.60 to $1.70 per share.

Analysts expect earnings of $1.74 per share.

(This version Corrects spelling of loss in long headline)