HealthSouth 1Q Profit Jumps As Legal Costs Fall

BIRMINGHAM, Ala. (AP) — HealthSouth Corp., a provider of inpatient rehabilitation services, said Tuesday its first-quarter profit nearly tripled, mostly due to reduced legal expenses.

The company posted a profit of $38.4 million, or 44 cents per share, compared with $13.3 million, or 17 cents per share, a year earlier. Its revenue rose 2 percent, to $475.1 million from $464.2 million. Excluding one-time items, it earned 39 cents per share.

Analysts were expecting 22 cents per share on revenue of $479.5 million, according to Thomson Reuters. In Tuesday trading, HealthSouth shares rose $1.07, or 10.7 percent, to close at $11.06. After hours, the stock gained another 12 cents to $11.18.

HealthSouth said its legal settlement expenses decreased to $15.9 million from $36.4 million a year earlier. It said patient discharges grew 5.7 percent in the first quarter, although prices decreased.

For the full year, the company said profit should be at the high end of its guidance of 85 cents to 90 cents per share. Analysts expected 87 cents per share.