Rehabcare Group, Inc.

Company Description

Rehabcare Group, Inc. provides rehabilitation management services in hospitals and various care facilities in the United States. The company owns and operates 5 long-term acute care hospitals and six rehab hospitals and has a market cap of $405 million.

Rehabcare Group has posted impressive gains over the last few months, rallying with the overall market. The company's strong second-quarter results, reported on May 6, gave its share price a nice boost.

First-Quarter Results

Revenue was up 12% from last year to $203.4 million. Income sky-rocketed, increasing 92% to $8.7 million, producing earnings of 48 cents per share, 17 cents ahead of the consensus.

Segment Results

Revenue from the company's skilled nursing division, its largest, was up 9% to $123.1 million. Hospital revenue was up 28% to $35.3 million.

Estimates On The Move

Estimates have been grinding higher for most of the last 3 months, with the current year climbing 22 cents to $1.49 per share. The next-year estimate stands at $1.79, a 20% earnings growth projection.

The Chart

Shares of RHB have bounced very nicely from their short-term lows just above $12 set in early March. With the recent surge pushing shares beyond the $22 mark, a new 52-week high is in hand. Take a look below.