Wednesday, March 11, 2009

RehabCare Group posts stronger-than-expected profit, revenue in 4th quarter, shares jump

RehabCare Group Inc., a rehabilitation program provider, reported a larger-than-expected profit in the fourth quarter, sending its shares higher on Wednesaday.

RehabCare said its profit rose 12 percent, to $5.7 million, or 32 cents per share, for the last three months of 2008, up from $5.1 million, or 29 cents per share, a year earlier.

Revenue grew 13 percent to $194.2 million from $171.8 million.

Analysts expected a profit of 26 cents per share and $187.5 million in revenue, according to Thomson Reuters.

RehabCare stock climbed $2.54, or 20.4 percent, to $14.99 in afternoon trading.

The company said contract therapy revenue grew 11 percent to $99.4 million. Hospital rehabilitation service revenue increased 13 percent to $43.7 million, and revenue from the hospital division rose 28 percent to $30.3 million. RehabCare also reported $9.8 million in other revenue.

For the full year, RehabCare's profit surged 48 percent, to $18.7 million, or $1.05 per share. The company earned $12.7 million, or 73 cents per share, in 2007. Revenue increased 5 percent, to $743.1 million from $704.5 million.

source yahoo

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