HealthSouth 2nd-quarter profit falls 49 percent, beats estimate

HealthSouth Corp. (HLS) on Monday reported profit that declined by 49 percent in its second quarter, but adjusted earnings still beat analysts' expectations.

The Birmingham, Alabama-based company said net income after preferred dividends fell to $81.6 million, or 85 cents per share, from $159.4 million, or $1.66 per share, in the same quarter a year ago.

Earnings, adjusted for non-recurring gains and to account for discontinued operations, came to 54 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 48 cents per share.

The rehabilitation hospital operator said revenue rose 7.1 percent to $604.4 million from $564.5 million in the same quarter a year earlier, and beat Wall Street forecasts. Analysts expected $588.2 million, according to Zacks.

HealthSouth shares climbed $2.86, or 7.6 percent, to $40.50 in after-hours trading. The stock has increased $4.32, or 13 percent, to $37.64 since the beginning of the year and has risen 14 percent in the last 12 months.