Beverly Enterprises Surges

The health care company almost doubles its first-quarter profit.
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Beverly Enterprises

(NYSE)

rose about 30% Wednesday morning after the Arkansas-based health care company late Tuesday said its profit almost doubled in the first quarter.

The company earned 23.4 million, or 22 cents a share, on revenue of $527.4 million, vs. $12.2 million, or 12 cents a share, on revenue of $476.2 million a year ago. The result included 4 cents a share from discontinued operations.

Based on Thomson First Call's survey, analysts expected net income of $9.6 million, or 10 cents a share, on revenue of $513.4 million.

The company provides nursing care and other services for the elderly in 24 states and Washington, D.C.

"During the past three years, we've taken aggressive actions as part of the turnaround of Beverly Enterprises to improve quality of care, upgrade our skilled nursing facility portfolio, grow our service businesses, increase operating efficiencies and strengthen our financial position," the company said in a statement.

Discontinued operations contributed $3.8 million, or 4 cents a share, to net income, primarily reflecting a gain on the sale of its Skilled Nursing Facilities.

Shares rose $1.89, or 29%, to $8.40, close to their 52-week high.