HealthSouth Report Better-than-expected Quarterly Earnings

By Sue Chang Markets MarketWatch Pulse

HealthSouth Corp. posted better-than-expected earnings, helping its shares to rally briefly in Monday's extended session. HealthSouth reported its second-quarter earnings fell to $79.4 million, or 70 cents a share, from $81.3 million, or 65 cents a share, a year earlier. On an adjusted basis, the company would have earned 71 cents a share. Net operating revenue increased to $981.3 million from $920.7 million. Analysts surveyed by FactSet had forecast earnings of 67 cents a share on revenue of $976 million. HealthSouth raised the lower end of its 2017 revenue outlook to a range of $3.88 billion to $3.95 billion versus $3.85 billion to $3.95 billion and tightened its adjusted earnings per share target to $2.64 to $2.73 from $2.61 to 2.73. HealthSouth is planning to change its name to Encompass Health Corp. on Jan. 2 and will trade under a new ticker: EHC. Shares are flat in the late session after initially jumping more than 5%.

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