Rehabcare Group, Inc.

Rehabcare Group, Inc. (RHB) recently set a new 52-week high after a powerful rebound from March lows. Estimates are on the upswing as well.

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.

Read the full analyst report on RHB